PORTERS 
PROGRESS  OF  NATIONS 

THE 
TEN  REPUBLICS 


ROBERT    P.    PORTER 


THE   TEN    REPUBLICS 


THE 

TEN    REPUBLICS 

AN    INTRODUCTION    TO   THE 

SOUTH      AMERICAN      SERIES 

IN     PORTER'S    PROGRESS    OF 

NATIONS 


BY 

ROBERT     P.     PORTER 


WITH   TWELVE   MAPS 


RAND,   McNALLY   &   CO. 

CHICAGO    &    NEW    YORK 


WlLLlhH    BRBNDON    AND    SON,    LTD.    PRINTERS,    PLVMOOTB 


**  To  point  out  the  progress  of  the  ttation — not  of  this  or  that 
section  of  its  inhabitants,  but  the  progress  of  the  whole  social 
system  in  all  its  various  departments,  and  as  affecting  all  its 
various  interests — is  the  object  proposed,  while  the  means  employed 
for  its  accomplishment  will,  as  far  as  possible,  be  sought  for  in  well- 
authenticated  facts,  and  the  conclusions  which  these  suggest  will  be 
supported  by  principles  the  truth  of  which  has  in  general  been 
recognised  by  common  consent." 

{From  The  Progress  of  the  Nation,  by  George  Richardson 
Porter  [1836-1843]). 


PREFACE 

The  series  of  volumes  on  the  Ten  Republics  of 
South  America,  to  which  the  present  little  book  is 
designed  to  serve  as  an  introduction,  has  for  its 
object  the  promotion  of  closer  relations  between 
Great  Britain  and  the  ten  nations,  and  the  develop- 
ment of  commerce. 

The  popular  price  at  which  the  volumes  are  to 
be  published,  and  the  convenient  and  attractive 
form  in  which  they  will  uniformly  appear,  should 
assist  the  author's  desire  to  enlighten  the  British 
public  concerning  South  American  affairs ;  and 
the  present  introductory  volume  is  thus  intended 
to  prepare  the  way  for  the  ten  succeeding  volumes 
in  the  series,  which  will  deal  with  the  industrial 
and  economic  progress  of  each  Republic  respec- 
tively. Having  personally  visited  more  than  half 
the  twenty  Latin  Republics  for  the  express  pur- 
pose of  enquiring  into  their  economic  condition 
and  resources,  the  author  believes  that  a  straight- 
forward account  of  the  progress  they  have  made, 
with  some  reflections  on  their  relative  importance 
as  future  fields  of  operation  for  British  capital  and 
enterprise,  will  be  of  interest. 


298952 


vi  THE   TEN   REPUBLICS 

In  the  course  of  these  journeys,  and  within  the 
last  two  years,  the  writer  has  been  granted  an 
audience  by  no  less  than  ten  South  American 
Presidents.  He  found  these  gentlemen  to  be  men 
of  exceptional  ability  and  imbued  with  the  spirit 
of  national  progress.  They  discussed  with  frank- 
ness the  relations  of  their  respective  countries 
with  the  other  South  American  Republics  and 
with  European  countries,  expressing  the  highest 
respect  for  Great  Britain  and  appreciation  of  the 
aid  its  capitalists  have  given  to  the  development 
of  the  resources  of  these  Republics,  and  evinced  a 
strong  desire  for  closer  trade  and  industrial  rela- 
tions. 

The  courtesy  displayed  by  all  government 
officials,  from  the  President  and  ministers  to  the 
chiefs  of  departments  and  bureaux,  in  according 
facilities  for  enquiry  and  in  furnishing  data  re- 
lating to  their  countries  is  but  inadequately 
recognised  by  this  expression  of  appreciation  and 
gratitude.  No  amount  of  trouble  seemed  too 
great  for  these  gentlemen  to  meet  the  repeated 
demands  for  information  which  was  supplied  with 
a  surprising  promptness  and  a  thoroughness  which 
was  altogether  admirable.  The  Director-General 
of  the  Pan-American  Union,  the  Honourable  John 
Barrett,  and  Mr.  Francisco  J.  Yanes,  the  Assist- 
ant Director,  have  also  been  extremely  helpful, 
supplying  their  bulletins  and  reports,  which  are 
by  far  the  most  trustworthy  official  publications 
obtainable  on  the  progress  of  the  American 
Republics.     This  organisation  is  devoted  to  the 


PREFACE  vii 

development  and  advancement  of  commerce, 
friendly  intercourse  and  good  understanding 
among  these  nations.  Each  country  contributes 
its  quota  to  the  work  and  has  a  representation 
in  the  management.  The  Union  is  handsomely 
housed  in  a  building  at  Washington,  D.C., 
dedicated  to  the  uses  and  purposes  of  the  Pan- 
American  Union,  which  cost  ;^200,ooo,  the  sum 
having  been  contributed  by  Mr.  Carnegie  and  the 
several  governments  interested.  The  author  has 
found  the  Pan-American  Union  international  in  the 
broadest  sense  of  the  word  and  its  Director,  Mr. 
Barrett,  is  keenly  alive  to  the  important  part 
Great  Britain  has  taken  in  the  progress  of  the  Latin 
American  countries.  The  facts  thus  ascertained 
will,  it  is  hoped,  be  of  value  to  the  British  public 
generally  and  may  perhaps  give  the  encourage- 
ment of  appreciative  friendship  to  the  countries 
under  discussion. 

Except  in  the  chapter  entitled  '*  Early  History," 
which  treats  of  Latin  America  as  a  whole,  the 
present  volume  deals  exclusively  with  South 
America,  while  the  Central  American  Republics 
have  been  reserved  for  a  future  series.  The 
Republic  of  Panama,  on  account  of  its  close  rela- 
tions with  the  United  States,  will  form  one  of  the 
volumes  in  the  Central  American  series,  but  a 
chapter  on  the  Panama  Canal  has  been  inserted  in 
the  present  issue,  partly  because  of  its  vast  impor- 
tance to  the  west  coast  of  South  America,  and 
partly  because  the  author  has  recently  returned 
from  an  inspection  of  this,  '' the  greatest  Engineer- 


viii  THE   TEN   REPUBLICS 

ing  feat  ever  undertaken,"  and  one  which  is  now 
well  on  its  way  to  satisfactory  completion. 

In  undertaking  the  preparation  of  these  books, 
and  in  securing  the  co-operation  of  the  publishers 
in  issuing  them  at  a  popular  price  and  in  a  con- 
venient form,  the  author  has  kept  before  him  the 
urgent  consideration  of  the  interests  of  British 
trade.  Is  it  commonly  realized  that  every  year 
British  capitalists  receive  thirty  million  golden 
sovereigns  from  their  investments  in  the  ten 
South  American  Republics  which  form  the  sub- 
ject of  this  introductory  volume?  There  must  be 
hundreds  of  thousands  of  people  within  the 
United  Kingdom  whose  incomes  are  more  or  less 
derived  from  dividends  on  the  stocks,  shares  and 
bonds  of  these  nations  or  of  their  provinces,  cities, 
railways,  banks,  or  other  enterprises.  Besides 
this,  the  United  Kingdom  can  claim  nearly  one 
third  of  the  ;^323,ooo,ooo  of  the  trade  of  the  ten 
Republics,  whilst  Germany  and  the  United  States 
combined  hold  another  third,  and  the  other 
countries  of  the  world  compete  for  the  remainder. 

British  interests  are  paramount  in  South 
America,  while  the  interests  of  the  United  States 
predominate  in  Central  America,  though  both 
nations  participate  more  or  less  in  the  trade  of  all 
the  Latin-American  countries.  True,  the  British 
investor  was  the  pioneer  in  this  part  of  the  world, 
and  his  courage  and  confidence,  together  with  his 
business  ability,  have  prepared  the  way  for  others 
to  follow,  and,  in  recent  years,  to  reap  where  he 
has  sown.     The  field  which  was  once  undisputed 


PREFACE  ix 

has  been  challenged  ;  Germany,  the  United  States, 
France,  and  Italy  are  successfully  competing  in  all 
these  markets  for  a  share  of  the  business.  At  the 
time  being.  Great  Britain  may  still  be  said  to  lead, 
but,  relatively,  her  competitors  are  rapidly  gaining 
on  her. 

With  such  a  stake  as  has  been  indicated,  it  is 
believed  that  the  British  public  will  welcome  a  few 
facts  about  Latin  America,  with  its  population  of 
seventy  millions,  its  tremendous  capacities  for 
producing  food-stuffs  and  raw  material,  and  its 
increasing  importance  as  a  purchaser  of  highly 
manufactured  products.  How  many  even  of  those 
who  derive  their  incomes  from  these  countries 
realize  the  fact  that  in  ten  years  the  trade  of 
Latin  America  has  increased  nearly  ^^^250,000,000, 
and  that  its  annual  commerce  is  now  valued  at 
;^425,ooo,ooo? 

The    best    guarantee   for   the    continuance    of 

friendly    relations    and    of    peaceful    intercourse 

between  nations  is  the  security  of  investments  and 

the  development  of  commerce.     These  conditions 

have     brought    about    the    cordial     relationship 

between    the    United    States   and    Great    Britain, 

which  has  received  such  striking  demonstration  in 

the  speeches  of  President  Taft  and  Sir  Edward 

Grey,  and  more  recently  by  those  of  Mr.  Asquith 

and  Mr.  Balfour,  whose  support  of  the  extension 

of  the  principle  of  International  Arbitration  has 

brought   the   prospect  of  peace  so   much    nearer 

realization.  R.  P.  P. 

108  Banbury  Road, 

Oxford,  y«;/^  30///,  191 1. 


CONTENTS 


Preface 

CHAP. 

I.  Early  History 

II.  The  Republics 

III.  Economic  and  Industrial  Progress 

IV.  Panama 

V.  The  Argentine  Republic 

VI.  Bolivia 

VII.  Brazil 

VIII.  Chile 

IX.  Colombia 

X.  Ecuador 

XI.  Paraguay 

XII.  Peru    . 

XIII.  Uruguay 

XIV.  Venezuela 

Index. 


I'AGK 

V 


I 

24 

55 
92 


156 


183 
205 
219 
231 

245 
262 
276 

289 


THE  TEN   REPUBLICS 


CHAPTER  I 

EARLY   HISTORY 

The  American  Continent  and  the  Islands  geo- 
graphically dependent  upon  it  are  divisible  into 
what,  for  the  want  of  more  precise  terms,  may  be 
distinguished  as  Anglo-Saxon  and  Latin  America. 
It  is  the  latter  which  forms  the  subject  of  this 
chapter. 

For  practical  purposes  the  history  of  America 
begins  in  1492,  when  Christopher  Columbus  sighted 
Watling  Island  in  the  Bahamas.  It  is  true  that 
the  world  he  then  discovered  was  inhabited,  but 
the  origins  of  the  native  races  are  too  obscure  to 
be  dwelt  on  here.  One  thing  is  certain  ;  to  have 
succumbed  to  the  handful  of  invaders  who  won 
America  for  the  King  of  Spain,  the  aborigines 
must  have  been  lacking  in  the  qualities  which 
make  a  people  long-lived  and  influential.  For  the 
most  part  they  were  savages,  of  so  low  a  type 
that  the  vast  American  continent  could  support 

B 


2 '''''TrfE'TEJ-N' 'REPUBLICS 

but  few  of  them.  Two  nations,  however,  must  be 
excepted  from  this  condemnation — the  Incas  of 
Peru  and  the  Aztecs  of  Mexico.  The  latter,  who 
were  the  race  conquered  by  Cortes,  may  have 
owed  their  arts  to  some  tribe  which  they  had  dis- 
possessed of  its  territory,  for  the  ferocity  of  their 
customs  was  strangely  at  variance  with  much  of 
their  civilization.  They  could  weave  and  work 
metals,  they  were  masters  of  a  system  of  pictorial 
writing,  and,  above  all,  they  were  great  builders. 
The  Incas,  too,  were  highly  skilled  as  masons 
and  as  metal  workers  ;  they  were  an  agricultural 
people  who  understood  the  value  of  irrigation  and 
of  good  roads,  and  they  were  the  inventors  of 
a  highly  centralized  form  of  government. 

In  the  middle  of  the  fifteenth  century  the 
merchants  of  Europe  were  disturbed  by  the  capture 
of  Constantinople  by  the  Turks,  who  soon  as- 
serted their  authority  over  the  Eastern  end  of 
the  Mediterranean.  It  became  advisable  to  find 
another  route  to  Asia.  The  Portuguese  made 
their  way  thither  by  rounding  the  Cape  of  Good 
Hope,  but  Christopher  Columbus  was  convinced 
that  he  could  achieve  the  same  object  by  crossing 
the  Atlantic.  His  precise  grounds  for  this  belief 
are  uncertain.  Ptolemy  the  Geographer  was  still 
an  authority;  in  his  works  the  Eastern  trend  of 
Asia  was  overestimated,  and  when  the  countries 
described  by  Marco  Polo  had  to  be  placed  still 
further  to  the  East,  it  became  credible  that — if  the 
earth  was  round — the  shortest  way  to  their  Eastern 


EARLY   HISTORY  3 

shore  lay  to  the  West.  To  confirm  this  belief 
there  were  legends  of  Norsemen  who  had  reached 
Vinland,  that  is  Rhode  Island,  by  way  of  Iceland 
and  Greenland  ;  and  what  was  more  convincing, 
from  time  to  time,  strange  timbers,  uncouthly 
fashioned,  were  cast  up  by  the  sea  after  westerly 
gales.  Columbus  spent  many  years  in  obtaining 
the  patronage  he  needed  for  his  design,  and, 
finally,  in  1492,  he  set  out  under  the  auspices  of 
Ferdinand  and  Isabella  upon  the  voyage  which 
made  him  famous. 

It  was  not  until  1498  that  Columbus  discovered 
the  mainland.  On  his  third  voyage  his  ship  ran 
into  the  discoloured  waters  of  the  Orinoco,  and  he 
inferred  that  no  island-bred  river  could  thus  have 
held  its  own  with  the  Atlantic  Ocean.  From  the 
natives  of  Central  America  were  gleaned  rumours 
of  rich  and  mighty  peoples  to  the  North  and  South. 
Coasting  voyages  resulted  in  the  capture  of  suffi- 
cient booty  to  whet  the  appetite  of  the  adventurers. 
Then  came  the  finding  of  Yucatan  and  clearer 
accounts  of  an  unknown  civilization.  Thereupon 
in  1 5 18,  Velasquez,  the  Governor  of  Cuba,  com- 
missioned Fernando  Cortes  to  undertake  a  further 
expedition  of  discovery,  and  put  him  in  charge  of 
about  four  hundred  Europeans,  some  guns,  and  a 
few  horses.  Cortes  founded  Vera  Cruz  a  little  to 
the  north  of  the  peninsula  of  Yucatan,  defeated 
the  Indians  of  Tlaxcala,  made  them  his  allies,  and 
then,  with  their  assistance,  overthrew  the  power- 
ful Aztec  Empire,  which,  from  its  stronghold  in 


A  THE  TEN   REPUBLICS 

Mexico,  had  established  a  pitiless  mastery  over 
the  surrounding  peoples. 

The  triumph  of  Cortes  is  thus  summed  up  by 
Prescott : — 

''  Whatever  may  be  the  thought  of  the  Conquest 
in  a  moral  view,  regarded  as  a  military  achieve- 
ment it  must  fill  us  with  astonishment.  That  a 
handful  of  adventurers,  indifferently  armed  and 
equipped,  should  have  landed  on  the  shores  of  a 
powerful  empire  inhabited  by  a  fierce  and  warlike 
race,  and,  in  defiance  of  the  reiterated  prohibitions 
of  its  sovereign,  have  forced  their  way  into  the  in- 
terior :  that  they  should  have  done  this  without 
knowledge  of  the  language  or  of  the  land,  with- 
out chart  or  compass  to  guide  them,  without  any 
idea  of  the  difficulties  they  were  to  encounter, 
totally  uncertain  whether  the  next  step  might 
bring  them  on  a  hostile  nation  or  on  a  desert, 
feeling  their  way  along  in  the  dark,  as  it  were  : 
that,  though  nearly  overwhelmed  in  their  first  en- 
counter with  the  inhabitants,  they  should  have 
still  pressed  on  to  the  capital  of  the  empire  and, 
having  reached  it,  thrown  themselves  unhesitat- 
ingly into  the  midst  of  their  enemies  ;  that,  so  far 
from  being  daunted  by  the  extraordinary  spectacle 
there  exhibited  of  power  and  civilization,  they 
should  have  been  but  the  more  confirmed  in  their 
original  design  ;  that  they  should  have  seized  the 
monarch,  have  executed  his  ministers  before  the 
eyes  of  his  subjects,  and,  when  driven  forth  with 
ruin  from  the  gates,  have  gathered  their  scattered 
wreck  together,  and,  after  a  system  of  operations 
pursued  with  consummate  policy  and  daring,  have 
succeeded  in  overturning  the  capital  and  estab- 
lishing their  sway  over  the  country  :  that  all  this 


EARLY    HISTORY  5 

should  have  been  so  effected  by  a  mere  handful  of 
indigent  adventurers,  is  a  fact  little  short  of  miracu- 
lous—too startling  for  the  probabilities  demanded 
by  fiction,  and  without  a  parallel  in  the  pages  of 
history." 

It  has  been  stated  that  rumour  placed  a  mighty 
empire  to  the  South  as  well  as  to  the  North  of 
Panama.  Three  adventurers,  Francisco  Pizarro, 
Alamagro  and  Luque,  met  together  on  the  Isthmus 
and  formed  a  project  to  seek  for  it.  The  first 
attempt  failed,  but  Pizarro,  the  leader  of  the  ex- 
pedition, pushed  on  down  the  West  Coast  and 
returned  with  sufficient  evidence  of  the  riches 
hidden  in  the  mountains  to  obtain  official  support 
from  Spain. 

But  for  the  Conquest  of  Mexico,  Pizarro's  exploit 
would  be  unique.  He  captured  the  South  American 
continent  with  two  hundred  men  !  It  is  true  that  he 
found  Peru  in  the  throes  of  a  civil  war,  that  he  was 
thus  enabled  to  establish  himself  in  the  country 
undisturbed,  and  that  his  first  great  success  was 
brought  about  by  treachery,  but  when  all  allow- 
ances are  made,  he,  like  Cortes,  achieved  the  incre- 
dible. He  commenced  by  ingratiating  himself 
with  Atahuallpa,  whom  the  civil  war  had  placed  at 
the  head  of  the  Empire  of  the  Incas.  This  done,  he 
enticed  him  into  his  power  and  compelled  him  to 
issue  orders  for  the  collection  of  a  ransom.  The 
Peruvians,  who  regarded  Atahuallpa  as  a  God, 
provided  the  huge  sum  that  was  demanded,  and 
thus  enabled  Pizarro  to  attract  reinforcements  to 
his  standard. 


6  THE   TEN   REPUBLICS 

Atahuallpa  was  then  judicially  murdered,  and 
after  one  or  two  checks  the  Spaniards  made  his 
kingdom  their  own. 

The  invaders  of  Peru  met  with  no  such  resistance 
as  that  encountered  by  Cortes  in  Mexico.  What 
fighting  there  was — and  it  was  ferocious  enough — 
was  the  outcome  of  their  own  disputes.  One  by 
one  the  leaders  went  down  to  some  tragic  doom. 

But  while  they  were  not  quarrelling  among 
themselves,  they  were  exploring  the  huge  continent 
of  which  they  had  taken  possession.  Alamagro, 
the  comrade  and  enemy  of  Pizarro,  pushed  his 
way  south  into  Chile  ;  Orellana,  who  accompanied 
Gonzalo  Pizarro  on  his  famous  journey  to  the  east, 
brought  a  boat's  crew  safely  to  the  mouth  of  the 
Amazon,  and  in  the  north  the  new  kingdom  of 
Granada  was  established  by  Gonzalo  Jimenez  de 
Quesada.  These  expeditions  all  issued  from  Peru, 
the  mother  colony,  a  fact  which  should  be  borne  in 
mind  in  connection  with  South  American  boun- 
dary disputes ;  what  Peru  has  not  specifically 
given  away  is  presumably  still  hers.  But  it  was 
not  only  from  Peru  that  explorations  were  con- 
ducted :  colonizing  parties  were  sent  out  from  Spain 
direct  to  the  eastern  seaboard,  and  settlements 
were  established  in  what  is  now  Venezuela  and 
Argentina.  In  the  meantime,  as  the  result  of  a 
partition  which  is  referred  to  later,  the  Portuguese 
had  taken  possession  of  Brazil.  That  country  was 
formed  into  hereditary  captaincies  and  obediently 
followed  the  fortunes  of  Portugal  until  the  feudal 


EARLY   HISTORY  7 

institutions  of  Europe  were  overthrown  by 
Napoleon.  The  rest  of  America,  up  to  and  even 
beyond  the  tropic  of  Cancer,  belonged  to  the  King 
of  Spain  for  some  three  hundred  years  after  the 
sailing  of  Columbus. 

The  Peruvian  invasion,  like  the  French  Revo- 
lution, consumed  its  own  children  ;  but  by  1550  the 
able  administration  of  Pedro  de  la  Gasca  intro- 
duced order  into  the  conquered  territories.  At  the  ^"^ 
outset  Spain  divided  her  possessions  into  the  Vice- 
royalty  of  Mexico  and  the  Viceroyalty  of  Peru. 
Subsequently  a  less  highly  centralized  administra- 
tion was  thought  desirable,  and  thus  New  Granada  X^ 
and  Argentina  each  became  a  Viceroyalty,  the 
former  in  1740  and  the  latter  in  1766.  Moreover, 
at  one  time  or  another  large  territories  were  placed 
under  **  captains  general" — officers  practically  in- 
dependent of  any  control  other  than  that  of  Spain. 

The  mother-country  seems  to  have  been  gen- 
uinely anxious  to  make  Christians  of  her  native 
subjects  and  to  preserve  them  from  harsh  treat- 
ment. In  the  latter  object  she  may  not  have  been 
successful,  for  many  of  the  tribes  died  off  when 
reduced  to  serfdom.  However,  those  who  sur- 
vived coalesced  with  the  Spanish  colonists,  and  in 
some  cases  with  the  negroes  imported  as  slaves 
from  Africa,  and  have  formed  a  race  which  bids 
fair  to  preserve  Spanish  traditions  for  many  genera- 
tions. But  whatever  her  solicitude  for  the  persons 
of  her  colonists,  Spain  had  little  for  their  pockets; 
the  commercial   regulations  which  she  saw  fit  to 


8  THE   TEN   REPUBLICS 

enforce  were  ill  conceived  from  all  points  of  view. 
She  treated  South  America  as  a  milch  cow,  but 
restricted  her  yield  by  denying  her  proper  nourish- 
ment. Trade  was  to  be  confined  to  Spanish 
bottoms— a  challenge  taken  up  by  Drake  and 
Hawkins  and  the  buccaneers  of  all  countries. 
Moreover,  the  Spanish  officials  who  were  sent  out 
to  govern  the  colonies  were  greedy,  lethargic 
and  corrupt — at  any  rate  until  the  end  of  the 
eighteenth  century,  when  many  reforms  were  in- 
troduced. 

But  the  Indian  is  a  stoic  and  the  Spaniard  a 
fatalist  ;  the  colonists  preserved  their  loyalty,  a 
loyalty  tempered  by  smuggling.  Thus  two 
British  expeditions  which  were  sent  to  the  Plate 
during  the  Napoleonic  wars  ended  in  disaster. 
But  when  Ferdinand  VII  was  compelled  to  re- 
nounce the  throne  of  Spain  in  favour  of  Joseph 
Buonaparte  a  new  situation  arose.  There  was  no 
longer  any  authority  behind  the  decrees  of  Fer- 
dinand's officials,  many  of  whom  were  unpopular, 
and  the  colonies  would  have  none  of  Joseph. 

Imbued  with  the  doctrines  of  the  French  Revo- 
lution, excited  by  the  breaking  away  of  England's 
North  American  possessions,  and  conscious  of 
their  own  grievances,  they  rose  in  revolt,  and  the 
restoration  of  Ferdinand  did  not  tempt  them  back 
to  their  allegiance.  Their  independence  had  to 
be  bought  with  blood,  and  fighting  went  on  in  all 
the  Spanish  dominions.  It  was  not  until  1824 
that  the  victory  of  the  insurgents   at  Ayacucho 


EARLY    HISTORY  9 

put    an    end   to   the    power   of  Spain    in    South 
America. 

For  their  liberty  the  colonists  had  to  thank  their  v 
generals,  San  Martin  and  Bolivar,  and  in  a  lesser 
degree  Great  Britain  and  the  United  States. 
The  former  nation  recognized  their  independence, 
fearing  that  the  re-establishment  of  Spanish 
supremacy  would  mean  the  end  of  her  trade ; 
the  latter  promulgated  the  Monroe  doctrine,  and 
thus  Europe  found  herself  "warned  off"  South 
America. 

It  is  impossible  in  a  short  introduction  to  give 
any  but  the  most  summary  account  of  the  large 
group  of  Islands  known  as  the  West  Indies,  a 
name  which  recalls  the  belief  of  their  discoverer 
Columbus  that  he  had  reached  India  by  sailing 
westward.  The  Spaniards  at  once  occupied  their  ^ 
new  territories  and  turned  their  attention  to  mining 
operations  for  which  they  exacted  forced  labour 
from  the  aborigines.  The  natives  perished  under 
the  demands  made  upon  them,  and  were  replaced 
by  negro  slaves.  The  Spaniards  were  not  left  in 
such  undisturbed  possession  of  the  islands  as  of 
the  mainland.  Much  of  the  latter,  being  poor  in 
mineral  riches,  was  abandoned  by  their  first  con- 
querors to  be  seized  later  by  the  English,  the 
French  and  the  Dutch. 

When  Spain  was  at  war,  it  was  first  of  all  in 
European  waters  that  her  merchantmen  were 
attacked  by  her  enemies.  With  the  accession  of 
Charles  V,   such  tactics   became  too   dangerous. 


lo  THE   TEN   REPUBLICS 

for  Spain  could  count  on  the  ships  of  Italy, 
Holland,  and  Germany.  The  privateers,  at  first 
mostly  French,  were  thus  driven  further  and 
further  away  until  they  sought  out  sheltered 
careening  stations  in  the  deserted  Antilles  whence 
they  made  their  raids.  When  the  Dutch  quarrelled 
with  Philip  II  they  profited  by  the  knowledge 
gained  in  his  service  to  do  likewise. 

From  attacking  ships  it  was  but  a  short  transi- 
tion to  raiding  the  coast  towns,  and  this  course 
especially  recommended  itself  to  men  like  Hawkins 
and  Drake,  while  Ralegh  went  a  step  further  by 
making  settlements  on  the  coast  of  Guiana. 

All  this  time  the  Spaniards  had  kept  the  trade 
with  South  America  as  far  as  possible  to  them- 
selves, and  there  was  money  to  be  made  in 
contraband.  The  English  and  French  used  to 
send  out  convicts  to  their  settlements  in  the 
Antilles,  and  thus  provided  recruits  for  the  bands 
of  smugglers  who  had  established  themselves  in 
secret  places  in  the  Archipelago.  In  this  way 
were  formed  the  organized  communities  of  buc- 
caneers who  preyed  upon  the  trade  of  the  Spanish 
Main.  Their  passionate  hatred  of  Spain  raised 
them  above  the  level  of  the  pirate,  and  one  of 
their  exploits,  the  march  of  Morgan  to  Panama, 
will  always  be  remembered  as  a  feat  of  arms. 

England  was  occupied  with  war  at  home  ;  the 
Spanish  colonies,  chafing  at  the  commercial 
restrictions  imposed  by  the  mother-country, 
welcomed  smuggled    goods,  and  the  enemies  of 


EARLY   HISTORY  ii 

Spain  were  not  above  making  use  of  the  buc- 
caneers, who,  in  their  turn,  showed  discretion  in 
their  depredations  and  thus  survived  for  many- 
years.  It  was  not  until  the  middle  of  the 
seventeenth  century,  when  Cromwell  captured 
Jamaica,  that  Spain  recognized  the  possessions  of 
other  nations  in  the  West  Indies. 

Cortes'  work  had  been  done  thoroughly. 
Macaulay's  line,  "the  richest  spoils  of  Mexico," 
was  not  a  mere  phrase  :  for  nearly  three  centuries 
Mexico  was  the  most  remunerative  possession  of 
the  King  of  Spain,  and  it  was  not  until  1810  that 
the  smouldering  discontent  with  Spanish  rule 
broke  into  flame.  After  some  ten  years  of  fighting 
independence  was  achieved. 

For  the  next  half  century  the  history  of  Mexico 
is  a  chronicle  of  battle,  murder,  and  sudden  death, 
for  her  people  showed  no  capacity  for  self-govern- 
ment. In  addition  to  internal  dissensions  she 
twice  involved  herself  with  foreign  Powers.  First 
of  all,  she  quarrelled  with  the  United  States  over 
the  western  boundary  of  Texas  —  originally  a 
province  of  hers,  subsequently  independent  and 
finally  annexed  to  her  northern  neighbour. 

The  war  that  ensued  cost  Mexico  New  Mexico 
and  California.  Peace  was  signed  in  1849,  but 
disorders  did  not  cease.  The  rival  factions  con- 
tinued to  fight  ;  foreigners  were  ill-used,  and 
finally  a  law  was  passed  suspending  the  payment 
of  the  interest  on  debts  incurred  abroad.  France, 
Spain,    and   England   thereupon    landed   troops ; 


12  THE   TEN    REPUBLICS 

the  two  last-named  Powers  allowed  themselves  to 
be  pacified  after  this  demonstration,  but  France 
took  advantage  of  the  struggle  between  the  North 
and  the  South  in  the  United  States  to  declare  war 
against  the  government  of  President  Juarez  with 
a  view  to  asserting  French  influence  in  Mexico. 
Under  her  auspices  Maximilian  of  Austria  became 
Emperor,  and  he  was  maintained  in  power  by  their 
bayonets.  In  1867  the  United  States  compelled 
France  to  withdraw  her  troops,  and  the  Mexicans 
promptly  executed  Maximilian.  Then  came  more 
disturbances,  but  in  1876  Porfirio  Diaz  was 
elected  to  the  Presidency,  an  office  he  still  holds, 
and  his  able  administration  has  secured  for 
Mexico  the  confidence  of  foreign  Powers  and, 
until  this  year,  the  internal  tranquillity  of  which 
she  was  in  great  need. 

South  of  Mexico  lie  the  five  Central  American 
Republics — Guatemala,  Honduras,  San  Salvador, 
Nicaragua,  and  Costa  Rica.  Their  history  is  very 
similar  to  that  of  their  northern  neighbour  ;  like 
her  they  had  to  submit  to  three  hundred  years 
of  Spanish  domination,  and  like  her  they  found 
that  freedom  did  not  mean  tranquillity.  In  the 
course  of  the  last  century  they  have  carried  on 
war  with  one  another  in  addition  to  being  rent 
by  civil  upheaval.  Many  attempts  have  been 
made  to  combine  the  five  States  into  a  Central 
American  Federation,  but  hitherto  no  success  has 
been  achieved. 

At  one  period  the  five   States  were   so  far   in 


EARLY    HISTORY 


13 


agreement  that  they  combined  to  abolish  slavery 
and  to  summon  the  Panama  Congress,  which 
aimed  at  the  federation  of  all  the  Republics  of 
America.  This  promising  union  was  dissolved 
in  1838,  because  the  pretensions  of  Guatemala 
were  offensive  to  the  other  States.  She  did  not 
renounce  them,  however,  and  in  1876  her  Presi- 
dent, Barrios,  perished  in  battle  in  trying  to 
establish  a  federation  by  force  of  arms.  Another 
attempt  in  1898  met  with  little  better  success. 

In  1907,  the  Presidents  of  San  Salvador, 
Nicaragua,  and  Honduras  held  a  conference  and 
settled  their  differences,  and  a  little  later  in  the 
same  year  the  representatives  of  the  five  Central 
American  States  met  in  Washington  and  agreed 
to  submit  their  disputes  to  a  Court  of  Arbitration, 
the  judges  of  which  were  to  be  appointed  by  the 
Congress  of  each  country.  The  decisions  of  the 
Court  were  to  be  binding  on  all  parties,  and  it 
was  given  the  right  "to  fix  the  status  quo  to 
be  maintained  from  the  moment  the  case  was 
submitted." 

At  the  same  time  the  representatives  signed 
treaties,  dealing  among  other  subjects  with  tariffs, 
communications,  and  extradition.  The  conference 
should  result  in  the  introduction  of  some  uni- 
formity into  the  constitutions  of  the  five  States, 
for  the  problems  that  confront  them  are  often 
identical ;  if  expectations  are  realized,  federation 
should  follow. 

Between  Guatemala  and  the  Caribbean  Sea  lies 


14  THE   TEN   REPUBLICS 

British  Honduras,  one  of  several  irregularly 
acquired  possessions  of  the  British  Empire.  One 
would  imagine  that  this  non-Latin  territory  must 
be  a  convenient  refuge  for  its  bellicose  neigh- 
bours in  time  of  trouble. 

The  Isthmus  of  Panama  is  situated  at  the 
extreme  South  of  Central  America.  Its  peculiar 
character  was  soon  discovered  by  the  Spaniards, 
and  in  1513  Nunez  de  Balboa  crossed  it  to  the 
Pacific  Ocean.  Panama  was  incorporated  into 
the  Viceroyalty  of  New  Granada  at  its  creation 
in  1718,  and  a  century  later  it  gained  its  freedom 
as  part  of  the  Republic  of  Colombia. 

After  vicissitudes  too  numerous  to  be  recounted 
here,  the  district  of  Panama  separated  itself  from 
Colombia  and  used  its  independence  to  cede  "  the 
Canal  Zone  "  to  the  United  States.  That  Power 
at  once  set  about  constructing  a  canal  across  the 
Isthmus.  Some  such  project  was  proposed  as  far 
back  as  the  time  of  Philip  II,  but  he  was  opposed 
to  it,  and  the  great  attempt  of  de  Lesseps  failed 
under  circumstances  not  yet  forgotten.  The 
opening  of  the  canal,  as  will  be  shown  in  a  sub- 
sequent chapter,  may  now  soon  be  expected. 

Colombia,  the  State  from  which  Panama  seceded,  / 
has  had  a  chequered  career.  The  name  was  given 
in  18 19  to  a  republic  made  up  of  New  Granada, 
Venezuela,  and  Ecuador,  and  in  1861  it  was  re- 
vived in  favour  of  the  first  of  these,  for  the  coalition 
only  lasted  a  few  years.  A  region  so  cut  up  by  _ 
mountains   did   not   lend   itself   to   a   centralized 


EARLY    HISTORY  15 

form  of  government,  and  the  spirit  of  union 
among  the  inhabitants  was  not  sufficiently  de- 
veloped to  triumph  over  natural  difficulties.  Left  y, 
to  herself,  Colombia  has  been  torn  by  every  form 
of  dissension  during  the  last  eighty  years,  with 
disastrous  consequences  to  her  credit. 

In  1903  she  was  allowed  an  opportunity  of 
putting  her  finances  on  a  sound  footing,  but  lost 
it  by  not  accepting  at  once  the  pecuniary  com- 
pensation offered  by  the  United  States  for  the 
cession  of  the  Canal  Zone  at  Panama.  Her 
haggling  cost  her  dear,  for  the  district  concerned 
revolted,  proclaimed  its  independence  and  secured 
for  itself  the  advantages  of  the  sale.  Colombia 
would  have  asserted  her  authority  over  the  rebels, 
but  was  prevented  by  the  United  States  on  the 
ground  that  a  civil  war  would  have  closed  the 
Isthmus  which  the  United  States  had  undertaken 
to  keep  open. 

Ecuador  separated  from  Colombia  in  1830  as  v 
related  above.  From  that  time  to  the  present  she  ' 
has  been  chiefly  occupied  with  internal  troubles, 
and  such  occurrences  as  have  drawn  upon  her  the 
attention  of  the  outside  world  have  not  redounded 
to  her  credit.  Indeed,  hitherto,  Ecuador  has  not 
shown  herself  greatly  concerned  for  her  reputation : 
in  1905  Japan  wished  to  acquire  from  Chile  the 
warship  *'  Esmeralda."  Chile  could  not  sell  the 
vessel  direct,  for  it  was  obvious  that  it  was  to  be 
used  against  China ;  it  was  accordingly  made  over 
to  Ecuador,  who  in  the  role  of  nian-of-straw  trans- 


i6  THE   TEN   REPUBLICS 

ferred  it  to  Japan.  Latterly,  -as  will  be  remem- 
bered, Ecuador,  having  submitted  to  the  King  of 
Spain  a  boundary  dispute  with  Peru,  made  diffi- 
culties about  accepting  the  award,  with  the  result 
that  the  question  still  remains  undecided. 

The  history  of  Venezuela,  the  third  member  of  > 
Bolivar's  Colombia,  is  as  tempestuous  as  that 
of  her  former  associates.  Indeed  in  Cipriano 
Castro  she  produced  a  President  of  the  type  that 
figures  on  the  musical-comedy  stage,  to  the  indig- 
nation of  the  more  settled  republics.  He  showed 
no  sense  of  responsibility  with  regard  to  finan- 
cial concessions  or  to  international  obligations, 
and  even  disregarded  the  cardinal  rule  of  playing 
off  the  Great  Powers  against  one  another. 

Thus,  his  term  of  office,  which  terminated  in 
1908,  when  he  was  recommended  to  go  to  Europe 
for  *'a  surgical  operation,"  was  one  of  anxiety 
for  diplomatists,  who  could  only  resent  affronts 
at  the  risk  of  becoming  involved  over  the  Monroe 
doctrine. 

By  invoking  the  assistance  of  the  United  States 
in  this  fashion,  Venezuela  created  serious  diffi- 
culties in  1905  between  that  country  and  Great 
Britain  over  the  boundary  line  with  British 
Guiana.  The  controversy  was  eventually  settled 
by  arbitration. 

Mention  has  been  made  above  of  the  manner  in 
which  foreign  nations  encroached  upon  theSpanish 
colonial  possessions.     In  the  first  half  of  the  seven-  n/ 
teenth  century  trading  settlements  were  founded  ' 


EARLY   HISTORY  17 

in  Guiana  by  the  English,  the  French,  and  the 
Dutch,  all  of  whom  have  retained  their  footing  on 
the  continent  to  the  present  day. 

Bolivia  proclaimed  her  independence  in    1825.    >J 
Since  that  date  she  has  had  to  suffer  from  much 
internal  disturbance,   but  her  most  serious    mis- 
fortune was  the  war  of  1879-83,  in  which  she  and 
her  ally  Peru  were  defeated  by  Chile.     It  resulted 
in  the  loss  of  her  valuable  coast  territory,  and  it 
is  now  the  object  of  her  diplomatists  once  more  to 
obtain  access  to  the  sea.     The  war  came  about  v/ 
when  Bolivia  realized  that  her  seemingly  worthless  ^ 
province  of  Atacama  was  rich  in  soda  and  salt- 
petre,  for  her  attempt  to  impose  heavy  taxes  on 
the  industries  established  there  by  Chile  soon  led 
to  hostilities  in  which  Perii,  similarly  situated  ass 
regards  Tarapaca,  also  became  involved. 

The  history  of  Peru  is  similar  to  that  of  Bolivia.  \j^ 
The  war  with  Chile  proved  disastrous;  it  deprived 
her  of  Tarapaca  and  left  a  legacy  of  trouble  in 
connection  with  Arica  and  Tacna.  When  peace 
was  concluded  these  provinces  were  occupied  by 
Chile,  on  the  understanding  that  after  ten  years 
they  would  be  restored  to  Peru  in  return  for  a 
million  pounds,  if  the  inhabitants  so  desired. 
Unfortunately,  the  treaty  did  not  specify  the  exact 
method  by  which  the  desire  was  to  be  expressed, 
and  the  relations  between  Peru  and  Chile  are 
complicated  at  the  present  time  by  the  contro- 
versy which  has  resulted.  In  common  with  her  yC^ 
sister  States  Chile  has  had  her  commotions,  but 
C 


1 8  THE   TEN   REPUBLICS 

her  people  have  infused  into  the  petulant  and  un- 
scrupulous methods  of  their  continent  an  energy 
and  a  concentration  of  purpose  which  is  their  own. 
Thus  she  had  made  her  preparations  for  the  war 
referred  to  above,  and  she  can  face  the  present 
complications  without  misgiving. 

The  most  serious  calamities  that  have  befallen 
Chile  in  recent  years  have  been  the  revolutions  of 
1891,  which  terminated  in  the  suicide  of  President 
Balmaceda,  and  the  earthquake  of  1906,  which 
destroyed  Valparaiso.  On  the  other  side  of 
the  account  may  be  set  the  peaceful  settlement 
of  disputes  with  Argentina  and  Bolivia,  and  the 
tunnelling  of  the  Andes. 

The  history  of  Argentina  is  peculiarly  interest- 
ing to  the  British  reader,  partly  because  of  the 
large  amount  of  British  capital  invested  in  the 
country  and  partly  because  of  the  military  ex- 
peditions sent  against  Buenos  Aires  by  the 
British  Government  at  the  beginning  of  the 
nineteenth  century.  At  that  time  Spain,  as  the 
ally  of  France,  was  the  enemy  of  Great  Britain, 
who  reckoned  that  an  invading  force  could  count 
on  the  support  of  the  discontented  colonists. 
This  supposition  proved  groundless :  however 
dissatisfied  the  Argentines  might  have  been  with 
the  suzerainty  of  Spain,  they  were  disinclined 
to  exchange  it  for  that  of  any  other  country, 
and  the  attempts  of  General  William  Beresford 
and  General  Whitelock  both  ended  in  complete 
failure.     The    next    few    years    were    taken    up 


r- 


EARLY    HISTORY  19 

with  the  struggle  for  independence,  and  when 
that  had  been  achieved  Argentina  was  torn 
by  internal  dissensions,  one  party  desiring  cen- 
tral, and  the  other  local,  government.  In  the 
meantime  a  war  against  Brazil,  which  had  seized 
the  **Banda  Oriental,"  was  brought  to  a  so  far 
successful  issue  that  the  two  combatants  agreed  to 
recognize  the  disputed  territory  as  independent 
under  the  name  of  Uruguay.  The  most  remark- 
able man  produced  by  Argentina  in  the  second 
quarter  of  the  nineteenth  century  was  Rosas,  the 
Gaucho  President ;  for  twenty  years  those  who 
opposed  his  despotic  rule  fell  victims  to  his  ruth- 
less energy,  and  it  was  not  until  1852  that  he  was 
defeated  in  battle  and  fled  to  England.  His  name 
is  connected  with  the  long  siege  of  Montevideo, 
which  eventually  resulted  in  the  intervention  of 
England  and  France. 

The  disappearance  of  Rosas  did  not  produce 
peace  ;  the  civil  disturbances  continued,  and,  in 
1865,  Lopez,  the  Dictator  of  Paraguay,  forced 
Argentina  into  a  long  war,  which  only  terminated 
with  his  death. 

Great  as  is  the  natural  wealth  of  Argentina,  this 
war,  followed,  after  an  interval  of  good  govern- 
ment, by  the  reckless  and  corrupt  Celman  Ad- 
ministration, sufficed  to  produce  financial  troubles 
which  caused  heavy  losses  in  England. 

During  the  last  few  years  greater  tranquillity 
has  prevailed  ;  an  active  railway  policy  has  been 
pursued,  the  resources  of  the  country  have  been 


7^ 


20  THE   TEN    REPUBLICS 

developed,  and  boundary  questions  with  Brazil 
and  Chile  have  been  referred  to  arbitration.  The 
improved  condition  of  affairs  is  largely  due  to  the 
firmness  and  capacity  of  General  Roca,  the  ex- 
President.  The  independence  of  Uruguay,  as  J 
has  been  stated,  was  recognized  in  1828  by  Brazil  ' 
and  Argentina,  but  for  some  years  there  continued 
to  be  a  party  favouring  incorporation  with  the 
latter  country.  This  party  received'  assistance 
from  President  Rosas,  whose  enemies  escaped 
from  him  by  crossing  into  Uruguay.  In  the 
resulting  struggle  Montevideo  sustained  a  siege 
for  nine  years,  finally  avoiding  capture.  In  1865  y 
Uruguay  allied  herself  with  Brazil  and  Argentina 
against  Paraguay ;  but  her  attention  has  been 
chiefly  absorbed  in  domestic  troubles. 

No  account  of  Paraguay  would  be  complete  >(^ 
without  some  reference  to  the  Jesuit  missions, 
which  were  singularly  successful  in  their  relations 
with  the  Indians.  In  the  seventeenth  century 
much  authority  was  placed  in  the  hands  of  the 
Jesuits;  but  in  1768  they  were  expelled  and  the 
people  soon  relapsed  into  barbarism  when  sub- 
jected to  the  ordinary  Spanish  officials.  In  1814  J 
Paraguay  became  independent  under  Dr.  Francia, 
a  beneficent  despot,  who  ruled  the  country  firmly 
and  encouraged  agriculture  and  industry.  But 
her  prosperity  ceased  under  the  presidency  of 
Francisco  Lopez.  His  arrogance  involved  him  in 
war  with  the  allied  Powers  of  Argentina,  Brazil, 
and    Uruguay  ;  he  prosecuted  the  struggle  with 


EARLY   HISTORY  21 

an  obstinacy  that  amounted  to  heroism,  and  before 
he  was  killed  in  1870  four-fifths  of  the  population 
had  disappeared. 

Since  that  period  the  career  of  Paraguay  has 
resembled  that  of  the  neighbouring  states. 

Thus  it  would  appear  that  the  history  of  the 
Spanish-American  republics  since  they  declared 
their  independence  is  a  series  of  disturbances. 
The  quarrels  were  partly  racial,  arising  from  the 
mutual  antagonism  of  the  whites  and  the  men  of 
colour,  and  partly  political,  one  faction  favouring 
a  centralized,  the  other  a  decentralized,  form  of 
government.  The  animosity  thus  engendered  was 
exploited  by  unscrupulous  demagogues  to  win 
power  and  wealth  for  their  friends  and  themselves. 
Shameless  though  their  tyranny  and  corruption 
appear  to  the  old  civilization  of  Europe,  South 
America  accepted  them  without  surprise.  For  . 
centuries  she  had  been  at  the  mercy  of  Spanish 
governors,  and  she  did  not  expect  her  masters  to 
change  their  ways  for  being  elected  instead  of 
appointed.  Moreover,  her  people  were  not  educated 
enough  to  adjust  themselves  to  the  complicated 
democratic  institutions  which  they  had  imported 
from  the  Anglo-Saxon  communities  in  the  North. 
The  newly  established  republics  usually  imitated 
the  constitution  of  the  United  States  with  its 
allocation  of  authority  partly  to  a  central  govern- 
ment and  partly  to  the  Federated  States,  and  the 
division  produced  discord  instead  of  union. 

Brazil,  by  remaining  a  monarchy,  long  escaped  V 


22  THE   TEN   REPUBLICS 

the  troubles  of  its  neighbours.  Supreme  authority, 
being  reserved  for  those  entitled  to  it  by  heredity, 
was  a  prize  to  which  no  politicians  could  pretend, 
and  thus,  during  the  early  days  of  the  indepen- 
dence of  Brazil,  the  political  upheavals,  serious 
though  they  were,  had  less  violent  consequences 
than  elsewhere  in  South  America.  In  1808  the 
French  expelled  Dom  Joao  VI  from  his  kingdom 
of  Portugal  ;  he  retired  to  Brazil,  and  the  liberal 
policy  which  he  initiated  with  regard  to  commerce, 
education  and  administration  contributed  greatly 
to  the  progress  of  the  country.  When  the  Napo- 
leonic wars  came  to  an  end  Dom  Joao  VI  returned 
to  Portugal,  leaving  his  son  Dom  Pedro  as  Viceroy. 
But  the  Brazilians,  surrounded  by  republicans, 
resented  all  attempts  of  Portugal  to  reassert  her 
old  authority,  and  the  unpopularity  of  the  mother 
country  became  so  great,  that  in  1822  Dom  Pedro 
found  it  expedient  to  proclaim  the  independence 
of  Brazil,  of  which  he  was  soon  afterwards  crowned 
Emperor.  Nevertheless,  being  still  regarded  by 
the  liberals  as  subject  to  Portuguese  influence,  he 
had  much  internal  opposition  to  contend  against, 
and  an  unsuccessful  war  with  Argentina  did  not 
add  to  his  popularity.  In  1831  he  resigned  in 
favour  of  his  eldest  son,  Dom  Pedro  V,  a  child  of 
five,  and  withdrew  to  Portugal.  The  new  Emperor 
maintained  his  position  until  1889  and  was  then 
deposed  by  the  republican  party  and  deported. 
This  fate  overtook  him  not  because  he  was  per- 
sonally unpopular,   but  because  the  conspirators 


EARLY   HISTORY  23 

anticipated  less  difficulty  with  a  ruler  so  un- 
suspicious than  with  the  Princess  Isabella,  who 
was  to  have  succeeded  him — a  lady  whose  clerical 
leanings  had  been  energetically  manifested  at  a 
period  when  she  acted  as  Regent.  During  this 
reign  Brazil  had  to  assert  herself  by  force  of  arms 
against  Argentina  and  also  against  Paraguay. 
She  emerged  from  both  struggles  with  credit,  but 
the  latter  cost  her  sums  of  money  which  she  could 
ill  afford.  The  financial  troubles  were  accentuated 
by  the  abdication  of  the  Emperor,  for  many  officials 
of  experience  and  reputation  followed  him  into 
retirement.  The  Republican  Government  which 
was  now  formed  showed  itself  corrupt  and  in- 
capable, and  a  naval  revolt  in  1893  added  to  the 
confusion.  There  followed  a  period  of  financial 
chaos,  fortunately  of  short  duration.  At  the 
present  time  the  administration  is  in  capable  hands 
and  the  share-lists  show  that  Brazilians'  securities 
are  popular  with  the  investor.  But  in  her  short 
independent  history  Brazil  has  done  more  than 
recover  from  monetary  difficulties.  Without 
bloodshed  she  has  made  herself  into  a  republic  ; 
without  bloodshed  she  has  abolished  slavery  ;  and 
yet  another  triumph  of  peaceful  character  has  been 
gained  by  her  men  of  science,  for  yellow  fever, 
which  used  to  ravage  Rio  de  Janeiro,  has  now 
practically  been  banished  from  it. 


CHAPTER   II 

THE    REPUBLICS 

The  political  history  of  South  America  is 
difficult  to  understand  without  a  map,  but  a 
glance  at  a  terrestrial  globe  makes  many  things 
clear — for  instance,  the  occupation  of  Brazil  by 
the  Portuguese.  The  statement  that  they  dis- 
covered it  while  endeavouring  to  round  the  Cape 
of  Good  Hope  ceases  to  be  incredible  when  it  is 
seen  how  close  the  Brazilian  coast  is  to  Africa, 
and  its  eastward  trend  has  a  further  significance 
when  it  is  remembered  that,  at  the  period  of  the 
discoveries,  Spain  and  Portugal — wishing  to  avoid 
disputes — each  agreed  to  leave  to  the  other  the 
new  countries  on  one  side  of  a  north  and  south 
line  of  demarcation.  This  line  was  decided  upon 
before  the  position  of  Brazil  was  appreciated,  and 
Portugal,  to  whom  the  East  was  allotted,  profited 
by  the  error  to  the  extent  of  half  a  continent — a 
result  little  foreseen  by  the  Spaniards  when  the 
terms  were  drawn  up. 

The  black  line  of  the  Andes  next  attracts  atten-   y, 
tion.     They  extend  northward  from    Cape    Horn 
up  the  whole  of  the  West  Coast,  and  they  have 
moulded    history    both     by     forming     a    barrier 

24 


O  Ou«ae>a>*4. 

,  Caribbean  -Sea  ^*  Martm.®-*. 


Cuqulrabo 


Out/ofPenat 


StfiffMngtUan 


»     SOUTH  CrOM^ 


THE   REPUBLICS  27 

between  one  side  of  the  continent  and  the  other, 
and  by  giving  rise  to  great  rivers  which  affected 
the  character  of  the  aborigines.  The  river  men  y^ 
ate  fish  and  were  content  to  remain  savage,  but 
the  mountain  men  had  to  till  the  soil  or  die.  The 
latter  found  it  necessary  to  bring  water  to  their 
crops  and  to  transport  them — hence  irrigation 
works  and  roads  and  pack  animals. 

And  so  it  came  about  that  it  was  in  the  moun-  N( 
tains  that  the  civilization  of  the  continent  had  its 
home.  Their  influence  did  not  diminish  with  the 
conquest.  In  them  were  found  the  precious  metals 
which  excited  the  cupidity  of  the  Spaniards,  and 
in  the  desert  on  their  seaward  side — shut  off  by 
their  bulk  from  the  wet  east  winds — were  formed 
the  nitrate  beds  for  which  Chile  and  Perii  fought 
for  three  years.  Such  was  the  strategic  value  of 
the  mountain  in  the  War  of  Independence  that 
San  Martin  had  first  to  capture  Chile  before  attack- 
ing the  Spaniards  in  their  stronghold  in  Peru. 
To  his  brother-inarms,  Bolivar,  they  personified 
success  and  failure.  Success,  when  he  urged  his 
tattered  rebels  across  their  trackless  glaciers ; 
failure,  when,  in  his  contempt  for  the  difficulties 
of  communication,  he  thought  to  form  into  one 
State  all  that  now  belongs  to  Venezuela, 
Colombia  and  Ecuador.  And  just  as  the  Andes 
broke  up  the  great  republic  dreamed  of  by  Bolivar, 
so  they  cut  off  Brazil  and  Argentina  from  the 
Pacific. 

The  map  shows  that  Bolivia  and  Paraguay  are 


28  THE   TEN    REPUBLICS 

even  more  unfortunate  ;  they  are  hemmed  in  on 
all  sides,  and  their  products  can  only  reach  the 
ocean  after  paying  toll  to  their  neighbours  ;  their 
geographical  position  prepares  one  for  finding 
that  their  commercial  development  has  been 
stunted. 

The  eye  follows  the  commanding  coast-line 
of  Brazil  until  it  is  arrested  by  the  small  State  of 
Uruguay,  finely  situated  at  the  mouth  of  the  Plate 
and  dominating  the  natural  outlet  of  Brazil's  great 
rival  Argentina.  The  student  versed  in  the  ways 
of  great  Powers  asks  himself  how  the  two  giants 
came  to  leave  this  pigmy  in  occupation  of  so  much 
that  is  desirable,  and  he  learns  without  surprise 
that  the  independence  of  Uruguay  resulted  from 
the  disinclination  of  Brazil  and  Argentina  to  see 
the  other  in  possession  of  the  '*  Banda  Oriental." 

On  the  Western  side  is  Chile  with  a  coast-line 
three  thousand  miles  long,  and  but  little  inland 
territory.  Thus  placed  she  should  breed  sailors, 
and,  sure  enough,  her  success  against  Peru  was 
largely  due  to  her  command  of  the  sea.  But  in 
the  American  continent  the  principal  geographical 
factor  is  the  thick  neck  of  land  at  Panama.  The 
map  explains  the  zest  and  conviction  with  which 
the  discoverers  sought  for  a  passage  to  the  Pacific  ; 
with  their  own  eyes  from  the  tree-tops  of  Darien 
they  had  seen  its  waves  breaking  on  the  further 
shore  of  the  narrow  isthmus,  which  has  been  the 
barrier  that  has  separated  two  oceans  and  is  to 
become  the  link  between  them.     The  commercial 


THE    REPUBLICS  29 

development  of  the  Western  States  has  long  been 
hindered  by  the  difficulty  of  communicating  with 
the  Eastern  coast  or  with  Europe;  but  with  the 
making  of  the  Panama  Canal  their  progress 
should  be  rapid. 

Such  are  the  chief  geographical  features  of  the 
South  American  Continent.  Just  as  they  have 
influenced  the  relations  of  the  different  peoples  to 
one  another,  so  they  have  modified  the  institution 
of  each  particular  republic.  In  the  first  place — as 
is  obvious — the  form  of  government  appropriate 
to  a  small  State  is  inapplicable  to  one  of  great 
area.  In  an  independent  city  of  ancient  Greece 
the  inhabitants  might  well  assemble  in  the  market- 
place and  there  elect  their  magistrates ;  but  such 
procedure  would  be  unsuitable  in  the  United 
States  owing  to  the  distances  to  be  traversed — and 
in  a  country  where  the  communications  were  less 
well  organized  the  objections  would  be  still  more 
forcible. 

The  difficulties  arising  from  the  centralization 
of  power  were  recognized  even  by  the  conservative 
Spaniards,  who  in  the  eighteenth  century  saw 
themselves  obliged  to  break  up  the  huge  vice- 
royalty  of  Peru.  Even  then,  nothing  in  the  nature 
of  "  home  rule  "  was  attempted.  Thus,  when  the 
time  came  for  the  independent  nations  to  choose 
their  own  constitutions,  almost  their  whole  politi- 
cal heritage  was  the  habitude  of  central  govern- 
ment and  the  knowledge  of  its  defects.  These 
centrifugal  and  centripetal   influences   must  have 


30  THE  TEN   REPUBLICS 

cancelled  one  another,  for  the  new  constitutions 
show  no  overwhelming  bias  to  one  direction  or 
the  other.  Those  who  framed  them  seem  to  have 
approached  their  task  without  prejudice. 

Colombia,  Paraguay,  Uruguay,  Chile,  Peru, 
Bolivia,  and  Ecuador  have  each  a  centralized 
government ;  Argentina,  Brazil  and  Venezuela 
are  each  a  *' union  of  sovereign  states,  according 
an  autonomy  to  the  various  provinces  while  re- 
serving limited  powers  to  the  central  authority." 

In  examining  the  institutions  of  the  ten  re- 
publics into  which  South  America  is  divided,  there 
remains  to  be  noticed  one  other  potent  factor 
which  may  perhaps  be  classed  as  geographical — 
the  influence  and  example  of  the  United  States  of 
North  America,  whose  organization  has  supplied 
to  her  Southern  neighbour  the  pattern  for  her 
great  industry  of  constitution-making.  Thus, 
there  is  a  family  likeness  in  the  systems  adopted, 
all  of  which— in  theory,  at  any  rate — are  purely 
democratic.  Privileges  founded  on  birth  or  blood 
are  not  recognized  ;  sovereign  power  emanates 
from  the  people,  and  is  exercised  by  the  delegates 
of  its  choice. 

The  three  functions  of  government,  the  legisla- 
tive, the  executive  and  the  judicial,  are  entrusted 
to  separate  and  independent  bodies.  In  each  case 
the  legislative  power  is  vested  in  two  chambers  ; 
the  executive  in  a  president,  the  judicial  in  a  su- 
preme court  authorized  to  suppress  unconstitu- 
tional action.     There  are  few  restrictions  on  the 


THE   REPUBLICS  31 

right  to  vote  ;  education  is  compulsory  and 
gratuitous,  and  religious  toleration  is  general. 
The  power  of  the  President  is  greater  than  that 
of  the  President  of  the  United  States,  but  in  many 
of  the  republics  the  Ministers  whom  he  has 
appointed  have  to  submit  a  report  of  their  admini- 
stration to  Congress,  while  his  own  orders  are 
invalid  unless  countersigned  by  the  Minister  of 
the  department  concerned.  The  States  have 
different  customs  :  in  Brazil,  Ministers  communi- 
cate with  Congress  in  writing  only  ;  in  Colombia, 
they  may  introduce  bills  in  person  into  either 
House.  For  administrative  purposes  the  republics 
are  divided  into  provinces,  districts,  and  muni- 
cipalities, the  heads  of  departments  being 
appointed  by  the  President :  in  some  cases  an 
elected  council  advises  a  nominated  chairman. 
The  constitutions  of  the  decentralized  republics 
differ  from  the  rest  in  reserving  larger  powers  to 
the  provinces  composing  the  State ;  with  the 
former  it  is  only  under  certain  conditions  that  the 
national  government  is  entitled  to  interfere  in 
local  matters. 

Protection  is  the  rule  in  South  America,  but  an 
analysis  of  the  different  tariffs  does  not  reveal  any 
general  law  regulating  the  customs  duties.  In 
most  cases  imports  are  divided  into  classes  in 
what  seems  an  arbitrary  manner,  and  the  duty  takes 
the  form  of  a  percentage  ad  valorem  which  varies 
with  the  class.  There  are  many  classes  :  neces- 
saries are  lightly  taxed,   and  there  may  even  be 


32  THE   TEN   REPUBLICS 

a  free  list  for  such  things  as  railway  material  ;  on 
the  other  hand,  at  the  higher  end  of  the  scale  the 
duties  are  prohibitive.  Argentina,  for  instance, 
imposes  a  heavy  tax  on  leather  goods — no  doubt 
because  she  possesses  the  raw  material  for  building 
up  a  leather  industry. 

But  this  is  not  the  place  for  giving  a  complete 
account  of  the  ten  republics  of  South  America  ; 
those  who  desire  details  must  consult  works  deal- 
ing with  the  part  of  the  continent  in  which  they  are 
interested.  All  that  can  be  attempted  here  is  to 
furnish  a  summary  of  the  characteristics  which  are 
common  to  the  different  countries  and  of  the 
peculiarities— if  any — which  distinguish  them  from 
their  neighbours. 

Reference  has  already  been  made  to  the  question 
of  centralization  about  which  so  much  blood  has 
been  spilt  in  South  America,  and  it  has  been  shown 
that  some  of  the  States  have  taken  one  view  of  the 
subject  and  some  another.  In  other  respects  their 
progress  since  their  independence  has  been  as 
uniform  as  was  to  have  been  expected  from  the 
similarity  of  their  origin.  Let  us  picture  an  imag- 
inary State — Andeana — and  confer  upon  it  the 
typical  institutions  and  history  of  a  South  Ameri- 
can republic.  Its  territory  is  immense,  many 
times  larger  than  that  of  England  ;  on  one  side 
it  is  bounded  by  mountains  rich  in  gold,  silver  and 
other  precious  metals  ;  among  the  snows  of  the 
heights  rise  huge  rivers  that  make  their  way  to  the 
ocean  through  forests  of  valuable  trees  and  across 


THE   REPUBLICS  33 

plains  furnishing  pasture  to  thousands  of  sheep 
and  cattle  ;  the  waterways  are  navigable  for  many- 
miles  and  convey  to  the  sea  the  produce  of  a  vast 
agricultural  area  which  they  can  be  made  to  irri- 
gate. Here  then  is  a  most  desirable  country ; 
with  good  government  its  prosperity  must  be 
exuberant.  We  find  that  Andeana  used  to  be  in- 
habited by  a  sprinkling  of  Indian  tribes ;  that 
they  were  conquered  by  Europeans  from  the  Iber- 
ian peninsula  at  the  beginning  of  the  sixteenth 
century  ;  that  victors  and  vanquished  combined  to 
produce  a  new  race  into  which  entered  an  admix- 
ture of  negro  blood  derived  from  the  slaves  imported 
from  Africa ;  that  the  nation  thus  formed  was 
exploited  by  its  masters  beyond  the  sea  who  re- 
stricted its  intellectual  and  industrial  development 
in  order  that  their  regulations  might  be  accepted 
without  demur  and  their  manufactures  without 
competition  ;  and  that  about  a  hundred  years  ago 
it  revolted  against  its  masters  and  proclaimed  its 
independence. 

The  freedom  of  Andeana  had  to  be  purchased  by 
hard  fighting  which  left  in  positions  of  authority 
not  only  generals  who  were  skilled  in  war  rather 
than  in  statesmanship,  but  also  those  self-seeking 
politicians  who  are  thrown  to  the  top  like  scum 
whenever  a  community  is  disturbed  by  a  revolution. 
When  the  time  comes  to  replace  the  institutions 
that  have  been  overthrown,  there  is  no  further 
scope  for  the  destructive  faculty  which  brought  the 
last  class  to  the  front,  and  if  they  possess  no  other 


34  THE  TEN   REPUBLICS 

qualifications  for  leadership  their  country  is  little 
the  better  for  the  change  of  government.  Such  was 
the  case  with  Andeana.  For  forty  years  unprin- 
cipled place-hunters  fought  for  the  spoils  of  office  ; 
civil  war  went  on  almost  without  cessation,  and 
yet,  in  spite  of  this  practical  training  in  the  use  of 
arms,  the  country  emerged  with  little  credit  from 
the  foreign  complications  in  which  she  was  involved 
by  the  arrogance  and  inexperience  of  her  rulers. 
Moreover,  she  was  continually  engaged  in  bound- 
ary disputes  with  her  neighbours.  Boundaries  had 
been  of  small  importance  in  the  colonial  days  ; 
they  divided  into  administration-units  the  pos- 
sessions of  the  same  master,  and  they  were  liable 
to  be  altered  at  a  stroke  of  the  pen  when  it  pleased 
him  to  create  a  new  vice-royalty.  The  lines  of 
demarcation  often  passed  through  unexplored  dis- 
tricts, and  were  not  always  to  be  reconciled  with 
the  physical  conformation  of  the  land.  Here  was 
a  fruitful  source  of  trouble,  for  Andeana  considered 
her  honour  bound  up  in  claiming  the  most  favour- 
able interpretation  of  every  document  bearing  upon 
the  subject,  and  her  sister  nations  adopted  precisely 
the  same  view. 

In  order  that  her  coast  towns  might  not  be 
bombarded,  Andeana  had  therefore  to  spend  her 
scanty  income  in  purchasing  warships  abroad. 
But  this  was  not  the  only  way  in  which  the 
national  resources  were  depleted.  To  enrich  in- 
dispensable politicians  revenue  had  often  to  be 
raised   in   a  manner   detrimental  to  the  ultimate 


THE   REPUBLICS  35 

prosperity  of  the  people.  The  currency  depre- 
ciated ;  foreign  bondholders  were  left  unpaid; 
and  heavy  interest  was  charged  for  the  financial 
assistance,  without  which  progress  could  not  be 
made  with  the  railways  essential  to  the  develop- 
ment of  a  young  country.  And  yet  the  con- 
stitution which  Andeana  had  conferred  upon 
herself,  when  she  proclaimed  her  independence, 
was  the  most  elaborate  that  experience  could 
devise.  Imbued  after  three  centuries  of  absolutism 
with  a  hatred  of  monarchic  rule,  she  had  come 
to  regard  '*  democratic"-  as  synonymous  with 
*' admirable "  ;  she  expected  the  men  who  had 
bayoneted  the  armed  defenders  of  the  old  con- 
stitution to  respect  the  paper  safeguards  of  its 
successor.  Call  the  leopard  a  president,  and  he 
would  change  the  spots  of  his  breed  ! 

The  new  constitution  was  a  miracle  of  checks 
and  balances;  the  legislative,  executive  and  judi- 
cial departments  were  made  independent  of  one 
another.  The  legislature  consisted  of  a  Chamber 
of  Senators  and  a  Chamber  of  Deputies,  both 
elected  by  direct  popular  vote.  Every  man  who 
could  read  or  write  and  enjoyed  a  fixed  inde- 
pendent income  acquired  the  suffrage  on  attain- 
ing the  age  of  twenty-five,  and  by  a  provision,  of 
which  Mr.  Roosevelt  would  have  approved,  the 
age  was  reduced  to  twenty-one  in  the  case  of 
married  men. 

The  Senators — two  for  each  department — were 
elected  for  six  years,  the  Deputies— one  for  every 


36  THE   TEN    REPUBLICS 

fifty  thousand  inhabitants — for  four  ;  one-third  of 
the  former  and  one-half  of  the  latter  retired  every 
two  years.  The  laws  passed  by  this  popularly 
chosen  body  were  enforced  by  a  President,  him- 
self elected  by  the  direct  vote  of  the  people.  He 
held  office  for  four  years,  at  the  end  of  which 
period  eight  years  were  to  pass  before  he  was 
again  eligible.  The  judges  of  the  Supreme  Court 
were  chosen  by  Congress  from  lists  submitted  by 
the  President,  and  were  empowered  to  decide  on 
the  constitutional  validity  of  the  laws  of  the 
former  and  the  actions  of  the  latter.  And  in  order 
that  the  elector  might  select  his  delegates  wisely, 
education  was  made  compulsory,  gratuitous  and 
secular.  The  rights  of  man  were  set  forth  in  an 
eloquent  preamble  and  then,  no  doubt,  the  con- 
stitution-makers of  Andeana  rested  from  their 
labours  in  confident  anticipation  of  the  millennium. 
Unfortunately,  these  anticipations  have  not  been 
realized ;  in  amending  human  nature  the  Re- 
publicans imbued  with  the  doctrines  of  the  French 
Revolution  were  neither  more  nor  less  successful 
than  pious  Queen  Isabella,  whose  institutions 
they  displaced. 

In  the  first  place,  an  ambitious  social  programme 
cannot  be  carried  out  without  money,  and  money 
owing  to  civil  disturbances  was  hard  to  obtain. 
Thus,  though  education  was  to  be  "compulsory, 
gratuitous  and  secular,"  so  few  schools  were 
built  by  the  State  that  most  of  the  teaching 
remained  in  the  hands  of  the  priests ;  seventy-five 


THE  REPUBLICS  37 

per  cent  of  the  population  were  illiterate,  and  were 
unable  to  exercise  the  suffrage. 

So  much  for  the  democratic  basis  of  the  con- 
stitution. But,  at  any  rate,  it  will  be  urged,  the 
various  departments  of  the  Government  were 
independent  of  one  another,  their  heads  were 
elected  by  direct  popular  vote,  and  the  will  of 
the  majority  of  the  educated  citizens  was  bound 
to  prevail?  In  practice  this  was  not  the  case. 
The  arrangements  governing  the  registration  of 
electors  and  the  holding  of  polls  were  in  the 
hands  either  of  officials  appointed  by  the  Presi- 
dent or  of  governors  who  went  in  fear  of  the 
national  army  which  he  controlled.  The  members 
of  Congress  were  apt  to  be  of  the  President's 
party,  and  it  followed  that  the  head  of  a  judiciary 
appointed  by  Congress  was  little  likely  to  play 
Judge  Gascoigne  to  his  Prince  Henry. 

Thus,  in  spite  of  constitutional  provisions,  the 
President  was  as  absolute  in  taxation,  in  adminis- 
tration and  in  control  of  the  police  as  any  Spanish 
viceroy.  More  so  indeed,  for  the  viceroy  had  the 
King  of  Spain  above  him.  The  political  sup- 
porters of  the  President  required  large  doles, 
and,  as  these  could  be  given  with  little  open 
scandal  in  the  form  of  concessions,  that  most 
wasteful  form  of  expenditure  was  adopted.  His 
enemies  had  no  legal  redress,  and  therefore  they 
stirred  up  the  revolutions  which  have  retarded  the 
development  of  Andeana. 

To   sum    up,   the  typical   South   American   re- 


38  THE   TEN   REPUBLICS 

public  occupies  a  large,  rich  and  scantily  popu- 
lated territory ;  its  revenue  is  small,  and  its 
annual  balance-sheet  shows  a  deficit ;  on  the 
other  hand,  its  potentialities  are  immense,  for  new 
sources  of  food  supply  must  be  sought  by  Europe, 
as  soon  as  the  population  of  North  America 
becomes  dense  enough  to  consume  all  it  produces. 

Of  recent  years  the  history  of  South  America 
has  been  more  cheerful  reading  ;  with  improved 
communication  comes  increased  trade,  wealth  can 
thus  be  acquired  in  careers  other  than  political  : 
credit  stands  fairly  high  ;  quarrels  are  often 
settled  by  arbitration  ;  there  is  ground  for  hoping 
that  the  period  of  civil  troubles  is  at  an  end. 

If  so,  the  States  of  South  America  will  have 
suffered  less  severely  than  those  of  Europe  from 
maladies  of  infancy.  All  the  former  are  republics, 
but  certain  dissimilarities  call  for  notice. 

Brazil,  for  instance,  is  marked  out  from  the 
Spanish  countries  around  her  by  being  Portuguese 
in  origin.  She  was  colonized  upon  a  somewhat 
different  principle.  The  country  was  divided  up 
by  John  III  into  hereditary  captaincies  which 
were  to  a  great  extent  self-governing.  Instinc- 
tively, therefore,  Brazil  adopted  a  federal  consti- 
tution ;  indeed,  no  other  would  be  suitable  to  a 
country  sixty-four  times  the  size  of  England. 
**  Each  of  the  old  provinces  forms  a  State  admin- 
istered at  its  own  expense  without  interference 
from  the  Federal  Government  save  for  defence, 
for  the  maintenance  of  order  and  for  the  execution 


THE    REPUBLICS  39 

of  Federal  Laws."  These  States  are  very  loosely 
connected  together  ;  they  have  public  debts  of 
their  own  and  regulate  and  appropriate  their  own 
export  duties.  Import  duties,  on  the  other  hand, 
belong  to  the  Union,  which  reserves  to  itself  also 
the  control  of  the  currency.  The  central  govern- 
ment is  authorized  to  intervene  to  maintain  the 
republican  form  of  government  in  the  States,  but 
the  latter  are  subject  to  few  other  restrictions.  On 
the  other  hand,  the  Central  Government  is  ex- 
pressly forbidden  by  the  Constitution  to  enter 
upon  a  war  of  conquest,  a  wise  provision  when  it  is 
remembered  that  the  frontiers  of  Brazil  touch  those 
of  every  South  American  country  except  Ecuador 
and  Chile,  and  that  she  has  had  considerable 
trouble  with  boundary  disputes. 

''The  legislative  authority  is  exercised  by  the 
National  Congress  with  the  sanction  of  the  Presi- 
dent of  the  Republic."  Congress  consists  of  two 
Houses,  both  elected  by  direct  vote  of  the  people, 
elaborate  precautions  being  taken  to  prevent 
members  from  accepting  paid  offices  directly  or 
indirectly  in  the  gift  of  the  government. 

The  executive  authority  is  vested  in  the  Presi- 
dent, who  is  elected  by  direct  vote  for  four  years. 
At  the  end  of  that  term  he  is  not  immediately 
eligible  for  re-election,  certain  of  his  blood  relations 
sharing  the  disqualification.  While  in  office  he 
exercises  very  wide  powers.  Ministers  being 
responsible  to  him  and  not  to  Congress. 

The  Federal  Judges  are  appointed  for  life. 


40  THE   TEN    REPUBLICS 

Until  1889  the  Roman  Catholic  religion  was 
supported  by  the  State.  The  connection  was  then 
abolished,  but  the  exercise  of  religious  worship 
has  not  been  made  subject  to  any  artificial  restric- 
tion, the  attitude  of  the  Government  towards  it 
being  that  of  benevolent  neutrality.  On  the  other 
hand,  civil  marriage  is  recognized  and  costs 
nothing.  Education  is  not  compulsory,  and  the 
higher  branches  alone  are  in  the  province  of  the 
Federal  Government. 

Brazil  has  a  large  debt  and  finds  it  difficult  to 
make  her  revenue  balance  her  expenditure  ;  but 
she  has  a  ready  market  for  her  coffee  and  rubber, 
and  her  resources  are  otherwise  so  great  that 
reasonable  government  must  ensure  prosperity. 

Of  the  remaining  nine  States,  all  of  which  are 
of  Spanish  origin,  two — Argentina  and  Venezuela 
— are  federations. 

Argentina  is  twenty-two  times  as  large  as  Eng- 
land, and  no  doubt  its  great  area  made  decentrali- 
zation advisable.  Moreover,  it  had  been  divided 
up  into  provinces  in  the  colonial  period,  and  the 
framers  of  the  Constitution  found  the  machinery 
of  local  government  already  in  existence.  Apart 
from  its  size,  there  were  few  difficulties  in  the  way 
of  unification,  for  the  country  was  not  divided 
into  industrial  and  agricultural  sections,  nor  was 
it  cut  up  into  different  zones  by  mountain  barriers. 
On  the  contrary,  the  river-system  of  the  Plate  gave 
it  many  common  interests. 

Thus,   although   the   provinces    retain    all    the 


THE   REPUBLICS  41 

powers  not  delegated  to  the  Federal  Government, 
the  bond  between  them  is  closer  than  that 
between  the  provinces  of  Brazil.  "  All  the  public 
acts  and  judicial  decisions  of  one  province  have 
full  legal  effect  and  authority  in  all  the  others." 

The  executive  power  is  in  the  hands  of  the  Pre- 
sident, who  holds  office  for  six  years,  at  the  end 
of  which  he  is  not  eligible  during  the  next  term. 
He  is  chosen  by  specially  selected  delegates,  as  in 
the  United  States.  He  must  be  a  Roman  Catholic, 
for  Argentina  has  officially  adopted  the  Roman 
Catholic  religion,  and  he  must  possess  an  income 
of  at  least  $2,000 — provisions  suggesting  a  con- 
servative element  in  the  national  policy. 

Justice  is  administered  by  federal  courts,  while 
each  province  has,  in  addition,  a  judicial  system 
of  its  own.  The  legislative  power  is  vested  in 
Congress,  subject  to  a  limited  veto  possessed  by 
the  President.  Congress  consists  of  two  Houses. 
The  Senators  are  elected  by  the  provincial  legis- 
latures ;  the  deputies  by  the  direct  vote  of  the 
people  in  the  ratio  of  one  to  every  thirty-three 
thousand  inhabitants.  Members  of  Congress  are 
paid  about  ;^i,ooo  a  year. 

As  may  be  inferred,  the  cost  of  living  is  high,  a 
circumstance  largely  due  to  the  protective  system 
and  the  long  distance  from  the  manufacturing 
centres  of  Europe.  High  duties  have  been  en- 
forced to  help  Argentine  manufacturers,  but  in  the 
future  they  may,  perhaps,  be  confined  to  those 
products  for  which  the  country  possesses  the  raw 


42  THE   TEN   REPUBLICS 

materials.  At  any  rate,  the  fiscal  policy  has  had 
the  effect  of  restricting  the  immigration  so  much 
desired  by  the  authorities,  and  has  excited  oppo- 
sition from  those  who  hold,  as  a  certain  class  once 
did  in  respect  of  the  United  States,  that  Argentina 
should  concentrate  her  attention  on  the  huge 
pastoral  and  agricultural  industries  for  which 
Nature  has  adapted  her. 

The  prosperity  of  the  industries  referred  to  may 
be  said  to  date  from  1881,  when  President  Roca 
put  up  to  auction  much  of  the  outlying  public 
lands.  Thereupon  money  flowed  in  from  outside, 
for  foreign  capitalists  were  encouraged  to  assist 
the  development  of  the  country.  Unfortunately, 
the  investors  acted  precipitately,  and  the  Argen- 
tine Government  showed  neither  the  will  nor  the 
capacity  to  handle  the  crisis  which  followed.  The 
currency  was  prejudicially  affected  at  the  time, 
but  the  country  is  once  again  prosperous. 

But  if  Argentina  welcomes  foreigners,  the  op- 
posite course  is  adopted  by  Venezuela,  the  only 
''federal"  state  remaining  to  be  noticed.  Her 
exploits  under  Castro  have  been  referred  to 
already,  and  the  same  spirit  is  indicated  in  her 
constitution  which  restricts  many  public  offices — 
that  of  members  of  Congress,  for  instance — to 
Venezuelans  born  in  the  republic.  Countries 
awaiting  development  seldom  put  obstacles  to  the 
inflow  of  the  capital  of  which  they  stand  in  need, 
and  the  policy  of  Venezuela  has  not  brought  her 
financial    prosperity.      Her  soil    is    rich,   she   has 


THE   REPUBLICS  43 

a  fine  position  on  the  Caribbean  Sea,  and  her 
proximity  to  the  Panama  Canal  should  be  of 
value  in  the  future  ;  but  at  present  her  industries 
are  backward,  and  she  possesses  about  540  miles 
of  railway,  though  her  area  is  eight  times  that 
of  England. 

The  legislative  authority  is  vested  in  a  Congress 
consisting  of  a  Chamber  of  Senators  and  a  Cham- 
ber of  Deputies,  the  former  elected  by  the  State 
legislatures,  each  of  which  sends  two  members,  the 
latter  by  direct  vote  of  the  people  in  the  propor- 
tion of  one  deputy  to  every  thirty-five  thousand 
inhabitants.  The  President  is  elected  by  Con- 
gress for  a  term  of  four  years ;  he  possesses  wide 
administrative  powers  which  are  shared  to  some 
extent  by  his  ministers ;  he  may  not  hold  his 
office  in  two  consecutive  terms.  Judicial  power  is 
vested  primarily  in  the  Supreme  Court,  but  the 
provinces  have  special  courts  of  their  own.  The 
revenue  is  chiefly  derived  from  the  Customs  House. 
Additional  charges  are  levied  on  imports  from  the 
Antilles  in  the  hope  that  the  wholesale  trade  may 
be  transferred  to  Venezuela  from  the  bonded 
warehouses  of  islands  like  Trinidad  (which  is 
only  seven  miles  from  the  coast).  By  this  means 
a  larger  class  of  ships  has  been  compelled  to 
serve  the  coast  ports.  The  currency  of  Venezuela 
is  on  a  gold  basis.  The  chief  exports  are  coffee 
and  cocoa. 

The  records  of  Paraguay  are  in  some  ways  un- 
like those  of  the  other  South  American  republics  : 


44  THE   TEN    REPUBLICS 

owing  to  the  absence  of  minerals,  she  attracted  little 
attention  from  the  Spaniards,  who  were  glad  to 
hand  over  the  management  of  such  unproductive 
territory  to  the  Jesuits.  She  thus  came  to  have  a 
character  of  her  own,  and  when  Spain  lost  her 
hold  upon  her  colonies  she  made  herself  inde- 
pendent not  only  of  the  mother  country,  but  also 
of  her  powerful  neighbours. 

In  area  Paraguay  is  about  twice  the  size  of 
England,  and  her  population  is  rather  more  than 
half  a  million.  Under  these  circumstances  one 
would  expect  to  find  a  preference  for  a  centralized 
form  of  government — the  more  so  as  there  is  no 
great  diversity  in  the  habits  and  pursuits  of  the 
people — and  such  is  the  case. 

The  administration  of  the  country  is  vested  in 
a  President  in  accordance  with  the  constitution  of 
1870,  which  in  many  particulars  follows  that  of 
Argentina,  especially  in  the  legal  provisions 
which  have  been  adopted.  The  President  has 
the  assistance  of  five  ministers,  who  are  respon- 
sible to  Congress.  Mindful  of  the  lessons  of 
their  early  history,  the  Paraguayans  have  inserted 
in  their  constitution  provisions  against  a  dictator- 
ship. The  President  cannot  be  reappointed  until 
eight  years  have  elapsed  from  the  conclusion  of 
his  term  of  office,  and  both  he  and  his  minis- 
ters are  specially  forbidden  to  interfere  in  elec- 
tions. 

In  practice  the  executive  has  large  prerogatives. 
The    legislature    consists    of    two    Houses,    both 


THE    REPUBLICS  45 

elected  directly  by  universal  manhood  suffrage, 
a  senator  representing  about  twelve  thousand  and 
a  deputy  six  thousand  voters.  The  members  of 
the  legislature  receive  ;6^200  a  year  each.  The 
legislature,  with  the  consent  of  the  President, 
appoints  the  judges  of  the  Supreme  Court,  and 
they  in  their  turn  decide  on  the  constitutionality 
of  the  laws  that  have  been  passed. 

The  influence  of  Argentina  is  apparent  in  many 
ways.  The  Roman  Catholic  Church  is  officially 
recognized,  and  definite  steps  are  taken  by  the 
Government  to  promote  the  development  of  the 
country  and  to  encourage  immigration.  More- 
over, as  in  Argentina,  the  tariff  is  very  high.  But 
there  are  indications  that  the  existing  duties  may 
be  lowered  in  the  future.  Paraguay  at  present 
does  not  enjoy  the  same  industrial  advantages  as 
her  neighbour,  and  one  may  expect  her,  therefore, 
to  decide  on  a  policy  of  her  own. 

Uruguay,  with  an  area  half  as  large  again  as 
that  of  England,  is  the  smallest  of  the  South 
American  States  ;  she  was  once  a  Brazilian  prov- 
ince, and  she  continues  to  form  a  natural  unit,  yet 
throughout  the  country  there  is  much  similarity 
in  the  products  and  in  the  conditions  of  life. 
Under  these  circumstances  it  was  natural  that  it 
should  be  organized  on  the  centralized  system. 
The  Legislature  consists  of  two  Houses ;  the 
Senators  are  appointed  by  an  electoral  college 
chosen  for  the  purpose  by  the  people,  but  the 
latter  elect  the  Deputies,  on  the  other  hand,  by 


46  THE   TEN   REPUBLICS 

direct  vote.  The  Judicature,  as  at  present  estab- 
lished, derives  its  authority  from  the  assembly 
thus  constituted,  which  elects  the  five  judges 
composing  the  High  Court  of  Justice.  During 
the  recess  the  functions  of  the  Legislature  are 
delegated  to  a  committee  consisting  of  two  Sena- 
tors and  five  Deputies.  Executive  power  is  in 
the  hands  of  a  President  assisted  by  a  Council  of 
Ministers,  his  term  of  office  lasting  for  four  years. 
The  President  appoints  this  Council,  but  its 
resignation  may  be  demanded  by  the  Legislature, 
which  is  thus  in  a  position  to  enforce  its  views  on 
the  other  branches  of  government. 

In  the  north  there  is  a  large  Brazilian  element 
among  the  population,  but  the  institutions  of 
Uruguay  owe  their  character  mainly  to  Argentina. 
For  instance,  the  tariff  is  highly  protective — al- 
though there  are  few  manufactures  to  foster — and 
official  recognition  is  accorded  to  the  Roman 
Catholic  Church. 

Uruguay  possesses  certain  advantages  :  a  geo- 
graphical situation  on  the  estuary  of  the  Plate 
which  both  gives  the  command  of  that  great  water- 
way and  assures  the  country  an  equable  climate, 
and  an  even  stronger  moral  situation — for  neither 
Brazil  nor  Argentina  could  look  on  with  equa- 
nimity if  she  were  attacked  by  the  other  or  by  a 
third  power.  Moreover,  in  addition  to  her  rivers, 
Uruguay  is  well  supplied  with  railways,  and  she 
has  maintained  a  gold  standard  which  should  be 
beneficial  to  her  foreign  trade  and  therefore  to  her 


THE   REPUBLICS  47 

revenue— half  of  which  is  produced  by  the  Customs 
House. 

Before  passing  to  the  Pacific  States,  attention 
may  be  directed  to  Colombia,  whose  coastal 
possessions  on  both  oceans  atone  in  some  measure 
for  the  loss  of  the  Canal  Zone.  Colombia  has  not 
only  altered  her  constitution,  she  has  entirely 
changed  its  character.  After  the  revolution  she 
was  converted  into  a  confederation,  but  in  1886 
the  States  were  deprived  of  the  sovereignty  and 
became  simple  departments  with  governors  ap- 
pointed by  the  President.  Some  of  their  old 
rights  have,  however,  been  left  to  them.  It  is 
hoped  that  with  the  old  divisions  many  causes 
of  disturbance  will  disappear  and  that  Colombia 
will  thus  gain  the  tranquillity  necessary  to  her 
finances. 

Colombia  is  made  up  of  one  federal  district, 
fifteen  departments  and  four  territories.  The 
Legislature  consists  of  a  Senate  and  a  Chamber 
of  Deputies  ;  the  Upper  Chamber  being  in  effect, 
nominated  by  the  President,  the  Lower  elected  by 
the  direct  votes  of  the  people.  The  office  of 
President  is  held  subject  to  certain  restrictions, 
but  these  have  not  always  been  observed.  After 
the  troubles  following  on  the  loss  of  the  Canal 
Zone,  some  form  of  dictatorship  was  necessary  in 
the  interests  of  order,  and  was  acquiesced  in  by 
the  majority  of  the  population.  In  this  way  the 
Executive  has  come  to  hold  large  powers.  The 
Judicature  has  its  chief  seat  in  Bogota  ;  the  judges 


48  THE   TEN    REPUBLICS 

of  the  Supreme  Court  are  nominated  for  five  years 
and  are  eligible  for  reappointment. 

The  Constitution  permits  the  practice  of  any 
form  of  ''  worship  which  is  not  contrary  to  Chris- 
tian morals  or  the  law,"  but  the  religion  of  the 
country  is  expresslyrecognized  as  Roman  Catholic. 
The  priests  have  great  power,  and  education  is 
entirely  in  their  hands.  For  education,  however, 
and  for  similar  purposes,  little  money  can  be  set 
aside  by  the  government,  owing  to  the  disturbances 
which  have  impoverished  the  nation.  These  have 
ended  by  depreciating  the  currency  to  such  an 
extent  that  financial  assistance  cannot  easily  be 
obtained  abroad,  and  many  necessary  undertakings 
have  still  to  be  begun. 

The  communications  leave  much  to  be  desired, 
more  railways  being  needed  to  develop  the  re- 
sources of  the  country,  for  many  of  the  most 
productive  centres  are  situated  in  the  mountains. 
Much  of  Colombia  is  unexplored  and  its  area  is 
uncertain  ;  it  may  be  taken  as  about  equal  to 
that  of  Peru. 

It  is  rich  in  minerals,  and,  were  it  not  for  the 
distances  to  be  traversed,  most  of  the  tropical 
crops  could  be  grown  with  profit.  The  products 
include  gold,  coal,  petroleum,  emeralds  and  coffee. 
Many  of  the  industries  have  been  nationalized. 

South  of  Colombia  is  Ecuador,  the  area  of 
which  cannot  be  given  with  accuracy,  partly  on 
account  of  the  insufficiency  of  the  surveys  and 
partly  on  account  of  boundary  disputes,  one  of 


THE   REPUBLICS  49 

which  relates  to  vast  territory  which  is  also  claimed 
by  Peru.  Under  any  estimate  Ecuador  must  be 
larger  than  England,  but  the  population  amounts 
to  barely  two  millions.  Of  these  a  very  high 
percentage,  being  illiterate,  are  debarred  by  the 
constitution  from  voting,  and  thus  the  whites 
form  the  governing  class.  Differences  in  rank, 
it  is  true,  are  not  recognized,  but  the  Indians 
occupy  a  definitely  inferior  station.  The  executive 
power  is  vested  in  a  President  elected  for  four 
years,  and  the  Legislature  in  a  Congress  of  two 
Houses.  Of  these  the  Upper  House  consists  of 
Senators — two  coming  from  each  province — and 
the  Lower  House  of  Deputies,  elected  on  the  basis 
of  one  to  every  fifteen  thousand  of  the  population. 

The  judicial  branch  of  the  government  consists 
of  a  supreme  court  appointed  by  the  Executive, 
six  superior  courts  in  various  districts  and  several 
inferior  courts. 

The  revenue  is  small,  and  is  not  expended  to 
the  best  advantage  ;  it  is  received  chiefly  from  the 
customs  duties  and  also  from  the  salt  monopoly 
and  from  taxes  on  liquor.  Ecuador  has  little 
mineral  wealth,  as  far  as  is  known,  but  she  is 
extremely  rich  in  vegetation,  for  the  winds  that 
have  crossed  the  Atlantic  are  chilled  by  the 
mountains,  on  the  Eastern  slopes  of  which  they 
deposit  their  moisture.  Her  chief  export  is  cocoa. 
**  According  to  the  constitution  of  1884  the  religion 
of  the  republic  is  Roman  Catholic  Apostolic,  and 
all  others  are  excluded." 


50  THE  TEN   REPUBLICS 

In  relation  to  religion  the  attitude  of  Bolivia 
resembles  that  of  Ecuador  :  '^  the  State  recognises 
and  supports  the  Roman  Apostolic  Catholic  relig- 
ion, the  public  exercise  of  any  other  worship  being 
prohibited  except  in  the  colonies,  where  it  is  toler- 
ated,"— in  practice  toleration  exists.  The  Church, 
moreover,  controls  education,  although  the  muni- 
cipalities are  nominally  responsible ;  thus  she 
exercises  considerable  influence,  for  the  right  to 
vote  is  not  granted  to  the  large  proportion  of  the 
population,  which  is  illiterate.  The  voters,  reduced 
in  number  in  this  way,  elect  directly  both  the 
Senators  and  the  Deputies,  who  form  the  Legis- 
lature, and  the  President,  in  whom  the  executive 
power  is  vested.  The  President  is  elected  for 
four  years,  and  then  ceases  to  be  eligible  for  a 
term  ;  his  decrees  must  be  countersigned  by  the 
Minister  of  the  department  concerned,  the  latter 
being  liable  to  prosecution  before  the  Supreme 
Court  for  any  misconduct.  The  judges  of  this 
court  are  selected  by  the  Chamber  of  Deputies. 

Bolivia,  though  maimed  as  the  result  of  the 
Chilian  nitrate  war,  is  the  third  in  point  of  size  of 
the  South  American  States,  her  area  being  eight 
times  that  of  England.  Although  much  of  it  is 
mountain  and  swamp,  the  constant  supply  of  water 
in  Lake  Titicaca,  the  tropical  situation,  and  the 
great  diversity  of  climate  made  possible  by  the 
mountains  suggest  a  great  agricultural  future  for 
the  country.  Unfortunately  she  labours  under 
one  great  disadvantage  ;  the  war  referred  to  above 


THE   REPUBLICS 


51 


not  only  took  from  her  a  rich  province,  but  de- 
prived her  of  her  outlet  to  the  sea.  Thus  the 
profits  of  her  export  trade  have  to  be  shared  with 
foreign  nations  who  could  extinguish  it  by  joint 
action.  On  the  other  hand,  these  nations  are  five 
in  number,  and  they  are  more  likely  to  compete 
for  the  trade  than  to  stifle  it.  Even  the  mountain 
railways  are  expensive  to  build  and  to  administer, 
and  the  river  routes  to  the  Amazon  and  the  Plate  are 
not  yet  developed  ;  at  present,  obstacles  like  the 
Falls  of  the  Madeira  River  increase  the  cost  of 
transit.  But,  as  will  be  seen  in  the  chapter  on 
Bolivia,  these  obstacles  are  rapidly  being  over- 
come. The  exact  value  of  Bolivian  exports  is 
difficult  to  ascertain,  for  they  are  liable  to  be 
classified  among  those  of  her  neighbours ;  they 
consist  largely  of  metals,  the  most  important  of 
which  is  tin.  The  famous  silver  mines  of  Potosi 
are  in  Bolivia. 

Peril  is  almost  the  same  size  as  Bolivia  :  it  is 
difficult  to  give  an  exact  estimate  of  her  area,  for 
the  official  figures  are  affected  by  political  con- 
siderations. There  is  naturally  a  temptation  to 
include  all  territory  in  dispute,  and  Peru,  as  the 
mother  colony  of  the  Spaniards,  has  claims  on  the 
unexplored  regions  to  the  centre  of  the  continent. 
Owing  to  these  she  has  been  involved  in  a  number 
of  boundary  disputes,  which  keep  the  population 
excited  and  affect  her  credit  prejudicially.  Some 
of  these  controversies  have  been  referred  to 
arbitration  with  results  satisfactory  to  both  parties, 


52  THE   TEN   REPUBLICS 

for  the  States  of  South  America  are  far  less  in 
need  of  additional  provinces  than  of  the  tran- 
quillity afforded  by  an  honourable  peace.  Un- 
fortunately for  Peru,  the  injuries  she  sustained  in 
the  nitrate  war  with  Chile  caused  her  such  heavy 
financial  losses  that  it  is  difficult  for  her  to  keep 
herself  in  the  advanced  state  of  preparedness  for 
war  which  inclines  an  opponent  to  accept  arbitra- 
tion. Earthquakes  and  tidal  waves  have  to  be 
enumerated  also  among  the  anxieties  of  Peru. 

The  executive  power  is  exercised  through  a 
President,  whose  decrees  have  to  be  countersigned 
by  a  Minister.  The  President  holds  office  for 
four  years,  and  is  not  immediately  re-eligible. 
Both  he  and  his  Senators  and  Deputies  who 
comprise  the  National  Congress  are  elected  by 
direct  voting.  Senators  must  have  an  income  of 
;^ioo  a  year,  or  belong  to  a  scientific  profession  ; 
in  the  case  of  Deputies  the  money  qualifications 
are  reduced  to  ^^50  with  the  same  exception.  The 
pursuit  of  science  apparently  is  not  necessarily 
lucrative.  One  of  the  duties  of  Congress  is  to 
select  the  judges  of  the  Supreme  Court  from  lists 
submitted  by  the  executive. 

The  State  protects  the  Roman  Catholic  Religion, 
and  does  not  permit  the  public  exercise  of  any 
other,  but  in  Peru  as  in  Bolivia  the  authorities  are 
tolerant  towards  other  beliefs. 

The  land  itself  is  extremely  rich,  cotton  and  sugar 
being  grown  in  large  quantities ;  guano  still  figures 
among  the  exports,  and  in  the  mountains  is  found 


THE   REPUBLICS  53 

almost  every  kind  of  mineral.  This  list  by  no 
means  exhausts  the  products  of  the  country,  which 
include  coffee,  cocoa,  rubber  and  the  wool  of  the 
sheep  and  llama.  And  it  must  not  be  forgotten 
that  Peru  is  the  reputed  home  of  the  potato. 

The  losses  of  Peru  and  Bolivia  have  been  the 
gain  of  Chile;  the  nitrate  beds  which  were  the  prize 
of  the  war  of  1879-82  have  made  a  great  difference 
to  a  treasury  that  was  none  too  full.  At  present 
they  provide  a  third  of  the  national  revenue,  a 
subsidy  which  allows  the  authorities  to  depend 
less  on  import  duties,  which  restrict  trade.  Chile 
possesses  a  centralized  government  with  a  basis 
theoretically  democratic.  Senators  and  Deputies, 
who  together  form  the  legislative  body,  are  elected 
by  direct  vote,  and  they  elect  the  President  in- 
directly. In  the  President,  who  holds  office  for 
five  years,  with  the  usual  proviso  as  to  re-election, 
is  vested  the  executive  power  and  also  a  modified 
veto  over  legislation.  It  also  rests  with  him  to 
nominate  the  governors  of  the  provinces  and  to 
appoint  high  judicial  and  ecclesiastical  personages. 
In  the  exercise  of  his  functions  he  has  the  advice 
of  a  cabinet  of  six  ministers,  and  there  is  also  a 
Council  of  State  which  has  to  be  consulted  on 
certain  occasions. 

The  State  preserves  intimate  relations  with  the 
Roman  Catholic  Church,  which  receives  a  subsidy 
from  the  National  treasury  ;  at  the  same  time  full 
religious  toleration  exists. 

Chile  is  less  rich  in  the  precious  metals  than  her 


54  THE   TEN    REPUBLICS 

sister  states,  but  she  produces  a  considerable 
amount  of  copper.  Her  chief  source  of  wealth, 
the  nitrate  fields,  has  been  already  referred  to  and 
mention  must  also  be  made  of  the  coal  mines  that 
are  now  being  developed  in  Arauco  and  Concep- 
cion.  The  increase  in  their  output  is  of  impor- 
tance to  Chilian  industries  and  also  to  the 
steamers  which  ply  on  the  western  coast. 

The  Chilian  currency  leaves  a  great  deal  to  be 
desired  and  all  classes  admit  that  it  should  be 
placed  upon  a  sounder  basis.  At  present  the  paper 
"peso"  fluctuates  in  value. 

It  is  thought  that  the  fighting  services  would 
render  a  good  account  of  themselves  in  war,  but 
although  the  Tacna  and  Arica  question  still  keeps 
Chile  estranged  from  Peru,  there  is  no  reason  to 
apprehend  any  resumption  of  hostilities.  Other 
disputes,  especially  those  with  Argentina, ,  have 
been  submitted  to  arbitration,  and  the  cordial 
relations  between  these  two  South  American 
Republics  was  afforded  ample  opportunity  to  dis- 
play itself  during  the  centennial  festivities  of  last 
year.  Visits  were  exchanged  by  the  Presidents 
and  the  meetings  were  made  the  occasion  for 
cementing  a  friendship  which,  it  is  hoped,  will 
prove  a  lasting  one. 


CHAPTER   III 

ECONOMIC   AND    INDUSTRIAL   PROGRESS 

At  the  root  of  all  the  problems  which  confront  the 
statesmen  and  philanthropists  of  the  present  day- 
lies  the  question  of  the  provision  of  food  and  the 
necessities  of  life  for  the  world's  ever-increasing 
population  and  of  new  markets  for  its  expanding 
industries.  In  the  Old  World  of  Europe  and 
Asia  all  the  many  inventions  and  devices  of 
science  for  prolonging  and  protecting  the  life  of 
the  individual,  for  multiplying  points  of  contact 
between  races,  and  for  supplying  the  new  wants 
created  by  their  intercommunication  and  material 
progress,  tend  only  to  accentuate  the  fierceness  of 
the  struggle  for  life.  All  our  wars  and  rumours 
of  war  may  be  traced  back  to  this  elementary  and 
insistent  problem  of  food-supply,  to  the  steady, 
inarticulate  pressure  of  millions  actually  or  poten- 
tially confronted  with  urgent  want.  The  com- 
plexity of  modern  life  frequently  obscures  the 
basic  economic  causes  of  political  events.  We 
talk  of  Imperialism,  socialism,  patriotism,  and 
other  forms  of  collective  intellectual  or  social 
activity  as  if  they  were  something  other  than 
manifestations  and  portents  of  economic  pressure. 

55 


56  THE   TEN   REPUBLICS 

Stranger  still,  statesmen  and  philanthropists, 
while  at  pains  to  increase  their  country's  birthrate 
and  to  diminish  its  deathrate,  continue  solemnly 
to  discuss  Utopian  schemes  of  universal  Brother- 
hood and  everlasting  peace.  But  this  grim  spectre 
of  hunger  cannot  by  any  means  be  exorcised.  For 
centuries  it  has  taken  heavy  toll  of  the  toiling 
millions  of  Asia,  and  now,  despite  a  steady  flow 
of  emigration,  its  black  shadow  lies  across  central 
and  western  Europe.  There  is  no  setting  aside 
that  inexorable  law  which,  in  time  of  need,  pre- 
scribes the  survival  of  the  fittest.  Our  modern 
inventions  and  passing  phases  of  humanitarianism 
may  for  a  time  delay  or  mitigate  its  application  ; 
the  exigencies  of  international  finance  may  com- 
plicate its  results  ;  but  the  lesson  of  all  history 
stands  clear  that  the  ultimate  ends  of  economic 
pressure — war,  pestilence  and  famine — can  only  be 
averted  by  reducing  that  pressure,  that  is  to  say, 
by  providing  new  outlets  and  new  sources  of  food 
supply  for  those  who  would  otherwise  perish. 

Looking  in  this  light  upon  the  modern  world 
and  its  complicated  affairs,  the  recent  progress 
and  vast  possibilities  of  South  America  assume 
a  degree  of  importance  which  can  hardly  be 
exaggerated,  and  the  immediate  destinies  of  the 
human  race  are  thereby  brightened  with  very 
justifiable  hopes.  It  is  only  within  the  last  few 
years  that  the  man  in  the  street  has  come  to 
realize  how  great  a  measure  of  relief  the  neces- 
sities  of  Europe  have   already  derived   from  the 


ECONOMIC  AND  INDUSTRIAL  PROGRESS    57 

development  of  this  amazingly  fertile  continent. 
It  has  been  left  for  the  twentieth  century  to  dis- 
cover, by  bloodless  paths  of  commerce  and  railway 
engineering,  that  Eldorado  of  which  Ralegh  and 
the  Spanish  explorers  dreamed ;  to  bring,  from  the 
New  World  to  the  Old,  well-won  treasures  more 
precious  than  all  the  plundered  gold  of  the  Incas, 
—the  unbounded  wealth  of  field  and  forest  in  those 
virgin  lands.  A  recent  writer  in  the  South 
American  supplement  of  The  Times^  discussing 
the  future  of  the  Latin  Republics,  has  empha- 
sized the  importance  of  this  point  of  view  in  a 
passage  which  may  appropriately  be  quoted  : — 

"Already,  it  would  seem,  the  world  is  within 
measurable  distance  of  the  day  when  the  United 
States,  Europe's  chief  outlet  and  granary  of  the 
past,  will  need  its  food  supply  for  the  support  of 
its  'own  population  ' ;  already,  in  the  utterance  of 
American  statesmen,  in  the  latest  manifestations 
of  their  world  politics  and  finance,  there  are  indi- 
cations of  the  coming  of  this  great  economic 
change.  And  coincident  therewith,  the  barriers 
by  land  and  sea  which  have  hitherto  isolated 
large  tracts  of  the  South  American  continent  are 
being  broken  down  ;  as  if,  indeed,  these  vast 
regions  had  been  kept  in  reserve  against  hu- 
manity's day  of  need.  It  is  but  yesterday  that 
the  Andes  were  conquered  by  the  railway  ;  it  is 
only  now  that  the  Central  States  are  being 
brought  into  communication  with  the  Atlantic 
and  Pacific  seaboards  :  to-morrow,  the  piercing  of 
the  Panama  Canal  will  throw  open,  along  eight 
thousand    miles    of    coastline,    new   gateways    to 


58  THE   TEN   REPUBLICS 

commerce  and  human  activity.  There  can  be  no 
doubt  that  the  completion  of  this  notable  enter- 
prise will  prove  the  beginning  of  a  new  epoch  in 
the  world's  commercial  evolution,  and  that,  for 
many  parts  of  the  southern  continent,  it  will  mean 
the  dawn  of  an  era  of  expansion  and  prosperity. 
The  prophecies  of  Humboldt  and  Agassiz  bid  fair 
to  be  fulfilled  in  the  near  future." 


For  the  purposes  of  the  present  work  we  are 
concerned  only  with  the  Republics  of  South 
America  proper,  those  ten  nations  in  the  making 
whose  commercial,  financial  and  intellectual  pro- 
gress asserts  itself  each  day  more  impressively 
upon  the  attention  of  the  civilized  world.  To 
give  the  general  reader  a  clear  and  comprehensive 
idea  of  that  progress  and  of  all  it  foreshadows,  we 
propose  to  outline  briefly  the  general  economic 
conditions  which  obtain  in  these  ten  Republics 
to-day,  comparing  their  position  and  prospects 
roughly  with  those  which  existed  twenty-five 
years  ago.  During  this  quarter  of  a  century, 
while  the  world  has  marvelled  at  the  extra- 
ordinary material  expansion  of  the  Northern  Con- 
tinent of  America  and  wondered  at  the  meteoric 
rise  of  the  modern  Empire  of  Japan,  these  younger 
branches  of  the  Latin  race  have  been  steadily 
emerging  from  their  state  of  geographical  isola- 
tion on  the  one  hand  and  political  unrest  on  the 
other.  Almost  unnoticed  until  a  comparatively 
recent  date,  their  great  cities  have  grown  to 
stately  beauty  and  wise  administration,  challeng- 


ECONOMIC  AND  INDUSTRIAL  PROGRESS    59 

ing  comparison  with  the  world's  best  examples  of 
municipal  government ;  their  railways  have  been 
pushed  out  over  high  mountain  ranges  and  across 
teeming  fastnesses  of  forest,  linking  up  the  wide 
inland  waterways  with  the  Atlantic  and  Pacific 
sea-boards.  And,  greatest  of  all  their  achieve- 
ments, science  and  sanitation  have  triumphed 
over  the  yellow  fever  peril,  that  dire  scourge 
which  for  long  years  held  back  the  tide  of  immi- 
gration, laying  its  dark  shadow  of  pestilence 
across  some  of  the  fairest  and  richest  regions 
on  earth.  The  routing  of  the  plague  mosquito, 
combined  with  the  leading  Republics'  growing 
stability  of  administration  and  recognition  of 
national  responsibility,  have  made  life  and  pro- 
perty as  safe  in  most  places  in  South  America  as 
they  are  in  Central  Europe,  so  that  communities 
which,  twenty-five  years  ago,  attracted  only  the 
flotsam  and  jetsam  of  the  world's  adventurous 
spirits,  now  draw  from  the  Old  World  a  steadily 
flowing  stream  of  industrious  settlers.  By  the 
efforts  of  these  immigrants,  and  the  influx  of  un- 
limited capital,  vast  regions  are  rapidly  being 
brought  under  development,  new  channels  being 
found  for  enterprise  and  new  rewards  being  offered 
for  human  industry.  It  is  certain  that  the  next 
generation  will  witness  a  material  and  intellectual 
expansion  of  Latin  America  as  remarkable  as  that 
which  for  many  years  focused  the  attention  of  the 
civilized  world  on  the  United  States  and  Canada. 
Already  it  is  clear  that  the  Argentine  Republic, 


6o  THE   TEN    REPUBLICS 

Uruguay  and  Southern  Brazil  are  destined  before 
long  to  take  the  place  of  the  United  States  as 
chief  suppliers  of  meat  and  grain  to  Europe. 
Brazil's  great  exports  of  coffee  and  rubber  repre- 
sent merely  the  output  of  a  fringe  of  that  enor- 
mous undeveloped  land.  Chile,  with  her  nitrates 
and  great  mineral  wealth,  Bolivia  and  Peru,  with 
their  rich  mines  and  rubber  forests,  are  already 
able,  like  the  leading  Republics,  to  show  large 
balances  of  trade  in  their  favour,  and  these 
resources  are  being,  for  the  most  part,  intelli- 
gently employed  in  the  construction  of  railways, 
harbour  works,  irrigation,  and  other  reproductive 
enterprises.  The  economic  stability  gradually 
resulting  from  this  industrial  and  agricultural 
activity  of  Latin  America  has  for  some  time  past 
been  unmistakably  reflected  in  the  money  markets 
of  the  world,  so  that  not  only  the  labour  but  the 
capital  of  Europe  now  seeks  these  fresh  fields  with 
ever-increasing  confidence. 

Regarded  in  the  order  of  their  economic  import- 
ance and  commercial  development,  the  ten  Repub- 
lics may  be  roughly  divided  into  three  classes. 
Argentina,  Brazil,  Chile  and  Uruguay  are  in 
the  first  rank,  their  position  and  future  greatness 
fully  assured  ;  Peru  (for  many  years  crippled  by 
the  disastrous  results  of  the  Chilian  War)  and 
Bolivia,  in  the  second  rank,  may  be  said  to  be 
now  entering  upon  a  period  of  national  and  well- 
organized  development.  In  the  third  rank, 
Colombia,    Venezuela,    Ecuador    and    Paraguay 


ECONOMIC  AND  INDUSTRIAL  PROGRESS    6i 

show  unmistakable  signs  of  industrial  awakening 
and  generally  improving  conditions.  The  re- 
sources of  the  last-named  countries  are  undeniably 
great,  but  their  effective  development  depends 
chiefly  upon  their  obtaining  and  maintaining  an 
efficient  and  honest  administration  of  public 
affairs ;  and  in  this  direction  the  outlook  is  gener- 
ally regarded  as  very  hopeful.  Elements  of 
unrest  undoubtedly  exist,  but  the  average  citizen 
appears  to  have  been  led  by  the  hard  lessons 
of  adversity  to  realize  that  productive  energies  are 
in  the  long  run  more  satisfying,  both  to  the  nation 
and  to  the  individual,  than  the  fearful  joys  of 
political  strife  and  civil  wars.  The  Governments 
of  these  countries,  even  in  the  midst  of  strife, 
have  clearly  recognized  their  need  for  financial 
reform  and  for  securing  to  the  foreign  capitalist, 
whose  assistance  they  require,  a  generous  measure 
of  protection  and  assurance  of  security. 

To  Great  Britain,  more  than  to  any  other 
country,  the  prosperity  and  progress  of  the  South 
American  Republics  are  matters  of  immediate 
concern,  for  the  simple  reason  that  British  manu- 
facturers have  hitherto  supplied  the  greater  part 
of  their  needs,  and  that  British  capitalists  have  led 
the  way  in  financing  the  industrial  and  agricul- 
tural development  of  the  continent.  Despite  the 
strenuous  activities  of  her  rivals,  British  trade, 
thanks  to  the  good  name  of  the  Englishman  and 
his  early  arrival  in  the  field,  still  holds  first  place 
in    Buenos    Aires,    Rio,    Montevideo,    Santiago, 


62  THE   TEN   REPUBLICS 

Valparaiso  and  other  centres  of  commerce.  The 
figures  shown  in  the  latest  available  statistics  fur- 
nish in  themselves  a  conclusive  argument  and  full 
justification  for  those  who,  in  continuing  to  direct 
the  activities  of  British  traders  to  the  unlimited 
opportunities  offered  by  the  expansion  of  South 
America,  claim  that  the  language,  customs  and 
requirements  of  this  enormous  market  of  the 
future  deserve  closer  and  more  scientific  study 
than  they  are  actually  receiving.  British  enter- 
prise led  the  way  in  these  regions,  and  has  already 
reaped  a  rich  reward  for  its  confidence  ;  but  the 
rapid  growth  of  manufacturers  for  export  in  the 
United  States  and  the  closely  organized  foreign 
trade  of  Germany  have  been  steadily  increasing 
the  pressure  of  competition  for  some  time  past, 
and  it  will  require  keener  attention  and  better 
methods  in  future  to  retain  the  leading  place. 

According  to  the  latest  returns,  the  amount  of 
British  capital  invested  in  South  American 
Government  bonds,  railways'  and  tramways' 
stock,  and  other  securities  quoted  on  the  London 
Stock  Exchange,  aggregated  at  the  end  of  1910 
more  than  six  hundred  millions  sterling,  and  the 
average  yield  of  these  investments  was  about  4!  per 
cent  per  annum  ;  that  is  to  say,  British  investors 
draw  annually  from  South  America  interest  to  the 
amount  of  nearly  ;^30,ooo,ooo.  To  emphasize  the 
significance  of  these  automatically  regular  remit- 
tances, we  may  observe  that  their  amount  is  about 
four  times  as  large  as  the  total  which,  with  infinite 


ECONOMIC  AND  INDUSTRIAL  PROGRESS    63 

travail  and  groaning,  the  huge  Chinese  Empire 
disburses  annually  to  meet  its  obligations  abroad 
for  foreign  loans  and  indemnities.  And  this  flow 
of  gold  from  South  America  to  England  is  the 
result  of  enterprises  as  beneficial  to  the  borrowers 
as  to  the  lenders,  the  direct  outcome  of  a  progres- 
sive and  liberal  financial  policy  on  the  part  of  the 
Governments  of  the  Republics  concerned,  which 
affords  an  instructive  object  lesson  to  many  a 
country  of  the  Old  World. 

Of  these  Republics,  Argentina  stands  easily 
first,  for  the  British  investments  in  the  quoted 
securities  of  that  country  alone  amount  to  over 
;^300,ooo,ooo,  and  this  figure  does  not  take  into 
account  the  very  large  but  unascertainable  amount 
of  capital  sunk  in  land,  cattle  estancias,  and  other 
private  enterprises.  How  good  are  the  uses  to 
which  the  Argentine  has  turned  this  stream  of 
capital  may  be  inferred  from  two  salient  facts  : 
one,  that  the  Republic  now  stands  fourth  among 
the  nations  of  the  whole  world  in  the  matter  of 
railway  development  in  proportion  to  population  ; 
the  other,  that  its  foreign  trade  averages  over  ;^20 
per  capita  yearly  and  is  rapidly  growing.  These, 
amongst  others,  are  facts  sufficient  to  account  for 
the  strenuous  efforts  which  the  United  States  and 
Germany  are  making  to  establish  themselves  and 
their  trades  in  the  good  graces  of  the  Argentines. 
The  United  States,  in  particular,  believes  that 
commerce,  like  kissing,  goes  often  by  favour,  and 
is  doing  its  best,   by  the  medium  of  the  Inter- 


64  THE   TEN    REPUBLICS 

national  Union  of  the  American  Republics,  by  the 
development  of  the  Pan-American  ideal  and  the 
gentle  uses  of  the  Monroe  doctrine,  by  the  Panama 
Canal  and  the  Pan-American  railway  schemes,  to 
divert  northwards  the  activities  of  the  Republics 
whose  trade  has  hitherto  been  chiefly  to  and  from 
England. 

After  Argentina,  Brazil  ranks  next  in  order 
of  importance  for  the  British  investor,  having 
already  absorbed  over  ;^i 50,000,000  of  capital  for 
undertakings  which  yield  an  average  return  of 
about  5  per  cent.  Chile  and  Uruguay  come  next, 
with  borrowings  of  i^5 1,000,000  and  ^46,000,000 
respectively,  the  return  on  which  is  approximately 
4-2  per  cent.  These  four  States  between  them 
account  for  nine-tenths  of  the  present  financial 
and  industrial  activities  of  South  America  as  re- 
flected in  the  money-markets  of  the  world.  It 
were,  however,  unwise  to  ignore  or  to  minimize  on 
this  account  the  opportunities  which  present  them- 
selves in  the  increasing  activities  of  the  other 
Republics.  What  the  leaders  have  done  in  the 
past,  favoured  greatly  by  their  geographical  posi- 
tion, will  assuredly  be  accomplished  also  in  the 
near  future  by  the  other  States,  now  that  the 
interior  of  the  continent  is  being  linked  up  with 
both  sea-boards  by  networks  of  railways,  and  cities 
which  have  slept  since  the  days  of  Pizarro  hear 
the  voices  of  the  engineer  and  the  commercial 
traveller  in  their  midst.  In  the  case  of  inland 
States  like  Bolivia,  Paraguay  and  Colombia,  cut 


ECONOMIC  AND  INDUSTRIAL  PROGRESS    65 

off  in  the  past  from  all  access  to  the  main  channels 
of  communication  and  commerce,  due  allowance 
must  be  made  for  the  insuperable  difficulties  hither- 
to prevalent.  Looking  to  the  future,  however,  we 
may  surely  assume  that  if  the  four  leading  Repub- 
lics have  offered  so  rich  a  field  for  British  capital 
and  enterprise  in  the  past,  the  possibilities  of  the 
future  will  be  practically  unlimited  in  these  other 
States,  as  their  untapped  resources  are  gradually 
brought  within  the  region  of  practical  exploitation. 
Turning  next  to  the  returns  of  trade,  as  signifi- 
cant in  their  way  as  those  of  finance,  we  find  that 
the  total  value  of  imports  and  exports  for  the  ten 
Republics  amounted  in  1910  to  nearly  350  millions 
sterling.  The  following,  in  round  numbers,  are 
the  totals  of  each  country  for  the  years  1908  and 

1910. 

1908  1910 

128,000,000  145,000,000 

79,500,000  111,000,000 

42,800,000  42,000,000 

14,400,003  16,000,000 

10,500,000  11,200,000 

6,800,000  7,400,000 

5,700,000  5,600,000 

4 ,  8co,  coo  5 ,  000, 000 

3,000,000  3,000,000 

1,500,000  1,400,000 


Argentine  Republic 

Brazil     . 

Chile       . 

Uruguay 

Perii  (estimated) 

Bolivia 

Colombia 

Venezuela 

Ecuador 

Paraguay 


298,000,000         347,600,000 


It  will  be  observed  that  the  first  three  countries 
account  between   them  for  the  greater  part  of  the 

F 


66  THE   TEN    REPUBLICS 

trade  of  the  continent,  and  that  the  commercial 
importance  of  Argentina  and  Brazil  have  been 
increasing  at  a  very  remarkable  rate.  Roughly 
speaking,  Great  Britain's  share  in  the  trade  of  the 
three  leading  Republics  has  averaged  for  the  past 
twenty-five  years  about  one-third  of  the  whole, 
Germany  and  the  United  States  between  them 
accounting  for  about  another  third.  Competition 
is  increasing,  it  is  true,  not  only  from  these  coun- 
tries, but  from  Belgium,  Italy,  and  France  ;  but 
so  also  are  opportunities  and  the  number  of 
accessible  regions,  and  British  traders  are  in  a 
position  of  advantage  in  all  the  principal  markets 
of  South  America,  because  of  the  all-pervading 
influences  of  that  mass  of  British  capital  to  which 
we  have  referred.  In  forming  an  estimate  of  the 
rate  of  material  progress  maintained  by  the 
several  Republics  during  the  past  twenty-five 
years,  an  examination  of  the  increase  in  their 
respective  populations,  trades,  and  revenues  will 
afford  the  best  standard  of  comparison.  For 
this  purpose  the  following  statistics  are  instruc- 


tive: 

(a)  Population. 

Revenue.                    Imports. 

£                       £ 
ARGENTINA. 

Exports. 
£ 

1882 
1910 

3,026,COO 

6.,985,io7 

1883)5,962,301       12,249,332 
(a)  23,177,206      70,354,000 

BRAZIL. 

12,077,810 

74,525,200 

1882 
19-10 

12,260,000 
20,515,000 

11,548,859       19,115,000 
31.315:3^5      47,871,974 
(a)  Estimated. 

19,418,000 
63,091,543 

ECONOMIC  AND   INDUSTRIAL  PROGRESS    67 


1882 

I9I0 

(a)  Population, 

2,219,180 
4,100,000 

Revenue. 

CHILE. 

8,244,515 

(a)  11,815,050 

Imports. 

10,700,000 
22,311,427 

Exports. 
£. 

14,280,000 
24,662,038 

1882 
1909 

(b)  438,245 
I, T  12,000 

URUGUAY. 
1,578,000 
(a)  4,971,660 

3,634,960 
7,905,694 

4,392,586 
9,524,258 

(c) 1876 

1909 

3,050,000 
4,200,000 

PERU. 
1,332,030 
2,518,062 

2,417,909 
4,356,132 

3,163,427 
6,134,374 

1884 

I9I0 

1,172,156 
2,180,170 

BOLIVIA. 

693,158 
(d)  1,274,030 

1,200,000 
2,954,900 

1,800,000 

7,456,653 

(e)  1882 
1909 

4,000,000 
4,320,000 

COLOMBIA. 

930,012 
2,887,420 

2,471,111 
2,112,209 

3,702,823 
3,102,669 

1881 
1909-10 

2,075,245 
2,664,000 

VENEZUELA. 
1,160,200          2,960,000 
(d)  1,996,000          2,243,200 

2,260,000 
3,422,550 

1882 
1909 

950,000 
1,600,000 

ECUADOR. 

(a)  630,500 
1,637,069 

1,870,424 

1,093,958 
3,000,621 

1882 
1909 

346,048 
633,000 

PARAGUAY. 
100,000 

(0  443,916 

264,425 
757,590 

330,135 
1,027,328 

The  excess  of  Exports  over  Imports,  common  to 
all  the  Republics,  is  a  significant  feature  of  these 

(a)  Estimated,  (b)  Partial  census,  1880.  (c)  Including^  nitrate 
territory,  now  in  possession  of  Chile,  (d)  1909.  (e)  Including 
PanamA,  since  seceded,     (f)  1908. 


68  THE   TEN    REPUBLICS 

Statistics,  and  indicative  of  a  generally  healthy 
condition  of  expansion. 

Turning  now  from  the  prosaic  business  of  trade 
returns,  let  us  consider  the  progress  made  by  the 
leading  Republics  in  other  directions,  notably  in 
railway  construction,  in  the  provision  of  harbours 
and  docks,  in  sanitation  and  education.  The 
difference  between  the  present-day  condition  of 
Buenos  Aires,  Rio  de  Janeiro,  Valparaiso  and 
other  capitals  with  that  which  existed  twenty-five 
years  ago  is  such  that  travellers  revisiting  these 
countries  find  it  difficult  to  reconstruct  their 
memories  of  those  bygone  days.  The  condition 
of  a  country's  capital  may  generally  be  taken  as 
the  outward  and  visible  sign  of  the  nation's  in- 
ward and  spiritual  graces,  or  disgraces.  In  its 
streets  and  public  places  the  traveller  may  read 
the  lessons  of  its  past  and  gauge  its  hopes  for  the 
future  ;  in  its  harbours  and  railway  termini  he 
may  hear  the  throbbing  murmur  of  expanding 
life  or  the  drowsy  note  that  presages  decay. 

Let  us  glance  first  at  Buenos  Aires.  Twenty- 
five  years  ago,  on  days  when  the  fierce  pampero 
blew,  it  was  a  common  sight  to  see  cargo  being 
landed  from  the  stranded  lighters  in  the  river 
by  means  of  high-wheeled  carts,  and  passengers 
were  either  brought  ashore  in  the  same  way  or  on 
the  backs  of  Italian  porters.  In  spite  of  the  dis- 
advantages of  its  position  in  this  respect,  however, 
the  city  had  already  firmly  established  its  claims 
as   leader   of  commerce   and   culture   among  the 


ECONOMIC  AND  INDUSTRIAL  PROGRESS    69 

Latin  Republics,  already  calling  itself  with  just 
pride  the  Paris  of  South  America.  In  1882 
Argentina  was  still  drawing  supplies  of  wheat 
and  flour  from  Chile  and  the  United  States,  but 
there  were  already  twenty-four  lines  of  steamers 
connecting  Buenos  Aires  with  Europe  and  laying 
the  foundations  of  a  trade  which  now  bids  fair 
to  rival  that  of  Chicago.  The  city  then  boasted 
twenty-two  daily  papers  and  twenty-five  theatres, 
and  was  known  throughout  the  world  as  a  place 
remarkable  for  a  bustling  and  business-like  activity 
not  usually  associated  with  the  works  and  ways 
of  the  Latin  races.  To-day,  trunk  lines  of  railway 
unite  the  capital  of  the  Republic  with  all  the 
provincial  centres  of  trade  and  with  the  neigh- 
bouring States,  while  no  less  than  thirty-nine 
steamship  lines  compete  for  its  rich  cargoes  and 
keep  up  its  communications  with  all  parts  of  the 
world.  Its  vast  docks  can  accommodate  the  largest 
ocean-going  freighters ;  along  its  wharves  and 
quays  the  ships  of  all  nations  lie  close-packed, 
stem  to  stern,  a  busy  hive  of  industry.  And  all 
this  teeming  wealth  and  purposeful  energy  owes 
its  origin  and  its  sustenance  to  the  fruitful  soil 
of  the  wide-stretching  pampas  where  the  emigrant 
finds  as  fair  and  free  a  field  for  his  labours  as 
in  Canada,  to  the  flocks  and  herds  of  the  estancias 
which  furnish  Europe,  and  particularly  England, 
with  inexhaustible  supplies  of  meat  and  hides  and 
wool.  Into  the  great  central  warehouse  of  the 
city  run  twelve  lines  of  railway  ;  within  its  walls 


70  THE   TEN    REPUBLICS 

are  piled,  roof-high,  the  abundant  produce  of  all 
parts  of  the  republic.  The  development  of  many 
parts  of  the  country,  especially  towards  the  south, 
being  still  in  what  may  be  termed  the  rudi- 
mentary stage,  the  city  of  Buenos  Aires  may 
confidently  look  forward  to  a  fuller  tide  of  pros- 
perity and  expansion  in  the  near  future.  But  its 
actual  achievements  and  progressive  energies  are 
sufficiently  remarkable.  Side  by  side  with  the 
growth  of  its  trade  and  industries,  the  city  has 
steadily  advanced,  and  with  good  cause,  its  claims 
to  rival  Paris  as  the  premier  city  of  the  Latin 
world.  Its  population  of  over  a  million  and  a 
quarter  constitute  a  community  as  intelligent, 
cultivated  and  socially  progressive  as  any  on 
earth.  In  the  matter  of  well-organized  and  efficient 
public  services  and  education,  indeed,  the  Argentine 
Republic  has  little  to  learn  from  Europe.  Mr.  John 
Barrett,  Director  of  the  International  Bureau  of 
American  Republics,  observed  last  year  that  ''if 
the  standards  required  for  the  practice  of  the 
learned  professions  of  the  Latin-American  Re- 
publics were  put  alongside  the  standards  required 
by  the  United  States,  the  comparison  would  be 
unfortunate  for  the  latter."  In  the  decoration, 
sanitation  and  municipal  administration  of  their 
city,  the  inhabitants  of  Buenos  Aires  have  good 
cause  for  pride.  The  mortality  of  the  city  is 
14*61   per  1000. 

A  few  miles  down  the  River  Plate  from  Buenos 
Aires,  on  the  opposite  bank,  lies  Montevideo,   in 


ECONOxMiC  AND  INDUSTRIAL  PROGRESS    71 

a  situation  so  favourable  that,  had  it  not  been  for 
long  years  of- political  unrest,  the  city  might  well 
have  out-rivalled  the  Argentine  capital  in  com- 
mercial activity  and  prosperity.  Its  population 
in  1875  was  127,000;  it  is  reckoned  today  at 
320,000,  of  which  roughly  one-third  are  foreigners, 
chiefly  of  Spanish  or  Italian  birth.  Thanks  to  the 
efficient  administration  inaugurated  by  President 
Williman,  and  to  the  country's  wonderful  climate 
and  other  geographical  advantages,  there  is  every 
reason  to  anticipate  that,  despite  the  persistence 
of  certain  turbulent  elements  in  the  body  politic, 
and  the  *'  mafiana"  propensities  which  are  still  a 
characteristic  of  the  "Banda  Oriental,"  Uruguay 
is  destined  to  achieve  a  very  important  commercial 
position  in  the  near  future.  The  Republic  is  the 
smallest  of  all  the  South  American  States  (in 
area  less  than  the  United  Kingdom),  but  in  1909 
it  recorded  a  balance  of  trade  in  its  favour  amount- 
ing to  no  less  than  ;^i, 700,000,  and  the  wealth  of 
its  agricultural  and  pastoral  resources  is  propor- 
tionately greater  than  that  of  any  other  part  of  the 
continent.  With  the  development  of  railways,  now 
actively  proceeding,  Montevideo  must  naturally 
become  the  outlet  not  only  for  its  own  hinterland^ 
but  also  for  large  areas  of  Brazil  and  Argentina. 
Twenty-five  years  ago,  the  Republic  was  already 
considered  as  a  redoubtable  trade  competitor  of 
the  United  States,  and  it  was  recognized  by 
political  economists  in  that  country  that,  given  only 
permanent  peace   within   its  borders,   its   natural 


72  THE   TEN   REPUBLICS 

advantages  were  very  great.  In  1888,  with  a 
population  of  less  than  half  a  million,  and  no 
more  than  540,000  acres  of  land  under  cultivation, 
the  Republic  produced  5,000,000  bushels  of  grain. 
To-day,  with  about  85  per  cent,  of  its  lands  still 
undeveloped,  it  exports  pastoral  produce  alone  to 
the  average  value  of  ;^7, 000,000. 

The  city  itself  is  a  very  pleasant  and  beautiful 
place,  revelling  in  a  delightful  and  healthy  climate. 
With  its  pure  air  and  steady  sunshine  and  the  clear 
look  from  its  terraced  limestone  ridge  that  looks  out 
across  the  bay  ;  with  the  lowest  recorded  death 
rate  of  any  city  of  modern  times,  and  a  plentiful 
and  cheap  supply  of  the  necessities  of  life  ;  with 
its  women  far-famed  for  their  beauty  and  its  easy- 
going, light-hearted  people, — Montevideo,  apart 
from  all  inducements  of  profit,  must  attract  in  in- 
creasing measure  the  holiday-makers  and  travellers 
of  both  worlds. 

British  financiers  perceived  long  since  the  pos- 
sibilities of  this  flourishing  State,  and  British 
investments  therein  are  accordingly  on  an  im- 
portant scale.  All  the  railways  which  connect  the 
capital  with  the  interior  have  been  built  with 
British  capital. 

Of  all  the  cities  of  South  America,  none  can 
show  such  wonderful  changes  of  recent  years  as 
Rio  de  Janeiro — Rio,  loveliest  of  harbours  and 
most  beautifully  situated  of  capitals,  which  until 
a  few  years  ago  lay  under  the  enduring  terror  of 
the  Yellow  Fever  scourge.     Space  does  not  per- 


ECONOMIC  AND  INDUSTRIAL  PROGRESS    73 

mit  us  to  tell  here  the  wonderful  and  dramatic 
tale  of  the  triumph  of  modern  science  over  the 
mosquito  which  for  centuries  had  made  Rio  a 
byword  among  seafaring  men,  or  to  describe  the 
successful  war  of  sanitation  waged  by  Dr.  Cruz 
and  his  fellow-workers,  a  war  which  converted 
the  Brazilian  capital  from  being  a  home  of  pesti- 
lence to  a  healthy  and  desirable  place  of  residence. 
An  early  writer  speaks  of  Rio  as  "a  gloriously 
whitened  sepulchre,"  and  thus  describes  the  state 
of  the  city  in  1889  : — 

"A  few  years  ago  there  was  not  even  a  sewer 
in  Rio,  and  all  the  garbage  and  offal  of  the  city 
was  carried  through  the  streets  on  the  heads  of 
men,  and  dumped  into  the  sea.  Now,  there  are 
drains  under  the  principal  streets,  but  they  seem 
to  be  of  little  use,  as  the  main  thoroughfares  are 
abominable,  and  one  wonders  what  the  less  pre- 
tentious ones  may  be.  The  pavements  are  of  the 
roughest  cobble-stone,  the  streets  are  so  narrow 
that  scarcely  a  breath  of  air  can  enter  them, 
and  the  sunshine  cannot  reach  the  pools  of  filth 
which  steam  and  fester  in  the  gutters,  breeding 
plagues.   .   .   . 

"  Rio  is  a  succession  of  disappointments.  The 
only  really  pretty  place  is  the  Botanical  Garden, 
which  serves  to  illustrate  what  the  whole  city 
might  be  with  the  exercise  of  a  little  taste  and  the 
expenditure  of  a  trifling  sum  of  money." 

Well,  the  ''trifling  sum  of  money"  has  been 
spent  ;  the  apathy  and  squalor  of  those  days, 
chiefly  due  to  the  constant  fear  of  Yellow  Fever, 


74  THE   TEN    REPUBLICS 

have  passed  for  ever,  and  the  Rio  of  to-day  is  as 
clean  and  healthy  a  capital  as  the  traveller  can 
desire.  Most  of  its  notable  improvements  are  of 
comparatively  recent  date  ;  a  few  years  ago, 
travellers  were  impressed  by  the  unsurpassed 
beauty  of  the  harbour  and  the  picturesque  loca- 
tion of  the  city,  nestling  between  the  hills  and 
the  sea  ;  but  the  general  aspect  of  the  capital  was 
disappointing,  partly  because  of  a  certain  hap- 
hazard quality  in  its  construction,  a  lack  of  dignity 
and  continuity  in  the  work  of  man  which  was 
emphasized  by  its  magnificent  background  of 
tropical  scenery  and  vegetation.  Here,  again,  it 
needed  the  expenditure  of  money,  no  trifling  sum 
this  time,  and  much  organized  energy,  to  raise 
Rio  from  her  former  lamentable  condition.  The 
city  improvement  scheme  of  1903,  long  considered, 
devoted  twelve  millions  sterling  to  this  work.  It 
provided  for  the  construction  of  a  quay  and  broad 
avenue  along  the  shore  line,  over  two  miles  long  ; 
for  the  prolongation  to  the  sea  of  the  Canal  which 
is  known  as  the  Mangue,  with  a  well-lighted 
avenue  on  either  side,  nearly  two  miles  in  length  ; 
for  the  construction  of  an  avenue  up  to  the  Quinta 
da  Boa  Vista,  once  the  residence  of  Dom  Pedro  ; 
for  the  levelling  of  hills  and  the  widening  of  streets, 
for  harbour  works,  drainage,  tramways,  and  the 
installation  of  a  hydraulic  plant  for  the  supply  of 
light  and  power. 

Whatever  may  have  been  the  condition  of  Rio 
in  former  days,  there  is  no  doubt  that  a  wonderful 


ECONOMIC  AND   INDUSTRIAL  PROGRESS    75 

transformation  has  taken  place  within  the  last 
decade.  Many  of  the  squalid  old  colonial 
quarters  have  been  cleared  away,  their  narrow 
streets  replaced  by  splendid  avenues  planted  with 
fine  trees  ;  boulevards,  gay  with  flower-beds,  cross 
the  city  in  all  directions  and  stretch  out  into 
the  distant  suburbs.  One  of  these  fine  thorough- 
fares crosses  the  city  at  its  narrowest  part ;  at  the 
point  where  it  meets  the  coast  it  is  joined  by 
another  and  still  longer  avenue  named  the 
Beiramar,  which,  sweeping  around  the  shores 
of  the  harbour,  includes  the  most  picturesque 
and  pleasant  quarter  of  the  town.  This  Beiramar 
recalls  to  mind  the  Avenida  of  Lisbon  ;  over 
four  miles  in  length,  it  is  one  of  the  finest 
promenades  in  the  world.  To  open  up  com- 
munication with  the  coast  beyond,  two  tunnels 
have  been  pierced  through  the  rock,  and  here, 
at  a  distance  of  some  forty  minutes  by  rail 
from  the  capital,  a  new  seaside  town  is  spring- 
ing up,  much  frequented  as  a  health  resort  and 
bathing-place  in  the  summer  months. 

Brazil  is  remarkable,  amongst  all  the  South 
American  Republics,  for  the  comparatively  large 
proportion  of  its  urban  population.  It  is  not 
possible  in  this  chapter  to  describe  the  marvellous 
growth  and  activities  of  its  chief  towns :  Sab 
Paulo  and  Santos,  the  flourishing  centres  of 
the  world's  chief  coffee  supply  ;  Para  and  Manaos, 
that  live  and  thrive  on  rubber  ;  Pernambuco  and 
Bahia,    marts     for    sugar    and    cotton  ;      Belem, 


76  THE   TEN    REPUBLICS 

whither,  through  the  Amazon  valley,  flows  trade 
from  Bolivia,  Peru,  Ecuador  and  Venezuela ; 
Porto  Alegre  and  Pelotas,  outlets  for  the  cattle- 
breeding  produce  of  Rio  Grande  do  Sul.  All  of 
these  names  are  already  becoming  familiar 
throughout  the  world  as  inexhaustible  sources 
of  trade  staples.  And  the  Republic  is  making 
timely  preparation  for  the  commercial  expansion 
of  a  near  future  ;  docks  and  harbours,  deep-water 
wharves,  have  been  or  are  being  constructed  to 
meet  the  requirements  of  the  largest  vessels  and 
quick  transhipment,  the  Brazilian  Government 
being  fully  alive  to  the  keenness  of  competition 
and  the  dangers  of  delay.  Over  two  millions 
sterling  has  been  expended  of  late  on  dock 
accommodation  at  the  port  of  Rio,  and  the  harbour 
improvement  works  now  being  carried  out  by  a 
British  Company  will  cost  four  millions.  At 
Santos  a  first-rate  harbour  has  been  provided ; 
at  Recife,  the  dredging  and  breakwater  scheme, 
to  be  completed  in  1914,  is  estimated  to  cost 
;^3, 360,000.  At  Para,  four  millions  sterling  are 
being  spent  on  harbour  improvements;  at  Manaos, 
floating  piers  and  other  works  are  being  provided 
to  obviate  the  difficulties  created  for  traffic  by  the 
great  differences  between  normal  and  flood  levels 
on  the  Rio  Negro.  At  the  same  time,  railway 
construction  is  being  vigorously  pushed  on  into 
the  interior,  every  line  adding  to  the  busy  traffic 
of  these  ports.  And  in  all  these  important  enter- 
prises, British  capital  and  British  materials  con- 


ECONOMIC  AND  INDUSTRIAL  PROGRESS    77 

tinue  to  find  increasing  opportunities  and  steady 
profits. 

To  refer  in  detail  to  all  the  capitals  and  pro- 
vincial cities  of  the  South  American  Republics 
would  require  a  volume,  but  Valparaiso's  and 
Santiago  de  Chile's  claims  as  centres  of  human 
activity  and  expansion  cannot  be  overlooked. 
Valparaiso,  the  premier  seaport  of  the  western 
coast,  stands  out  as  a  monument  to  the  courage 
and  energy  of  the  Chilian  people.  Its  growth 
and  prosperity,  despite  many  natural  obstacles 
and  its  geographical  disadvantages,  have  been 
made  possible  by  the  vigorous  optimism  and 
enterprise  of  a  race  which  combines  all  the  intel- 
ligence of  the  Latin  with  the  persistent  audacity 
of  the  Anglo-Saxon.  The  energies  of  the 
Chilenos  have,  indeed,  been  characterized  in 
the  past  by  a  somewhat  militant  quality,  of 
which  we  may  find  proof  in  the  fact  that  the 
Republic's  territories  to-day  include  a  coast-line 
that  was  formerly  Bolivia's  and  valuable  nitrate 
regions  that  belonged  originally  to  Peru,  and  that, 
by  the  partition  of  Patagonia,  her  frontiers  now 
stretch  southwards  to  the  Straits  of  Magellan. 
With  the  completion  of  the  Transandine  Railway 
and  the  prospect  of  the  opening  of  the  Panama 
Canal,  Valparaiso  and  Santiago  have  assumed  a 
new  importance  and  suggest  new  visions  of  great- 
ness amongst  the  leading  cities  of  the  New  World. 
It  is  indeed  difficult  to  exaggerate  the  impetus 
which  the  completion  of  these  great  undertakings 


78  THE   TEN    REPUBLICS 

must   give   to    all    the   activities    of    the    ChiHan 
Republic. 

Almost  completely  destroyed  by  the  terrible 
earthquake  of  the  27th  August,  1906,  Valparaiso's 
white  buildings  rise  imposingly  to-day,  climbing 
the  foothills  from  the  narrow  marge  of  the  sea. 
Whether  approached  by  land  or  by  water,  the  first 
impressions  of  this  land  of  nitrates  and  cattle, 
timber  and  wine,  delight  the  eye.  From  Valparaiso 
the  line  to  Santiago  runs,  it  is  true,  through  a 
barren  rock-strewn  land  ;  but  suddenly  emerging 
from  its  desolation,  the  traveller  finds  himself  in 
the  heart  of  a  luxuriant  and  beautiful  city,  and 
beholds  one  of  the  most  stately  of  those  broad 
avenues  which  the  Latin  races  love,  the  far- 
famed  Alameda — a  broad  highway  lined  by  magni- 
ficent poplars,  flanked  by  imposing  buildings  and 
beautified  by  statuary,  fountains  and  flowers. 
Around  the  strangely  picturesque  pile  of  rocks 
known  as  Santa  Lucia  (cast  up  by  some  titanic 
freak  in  the  midst  of  the  plain  on  which  the  city 
stands),  stretching  out  along  both  banks  of  the 
Mapocho  river,  this  furthest  home  of  the  Latin 
race  has  attained  a  character  and  a  dignity  of 
its  own  which  found  suitable  expression  last  year 
in  the  inauguration  of  that  palace  of  Arts  built  to 
commemorate  at  the  capital  the  centenary  of  the 
nation's  independence.  To  the  East  and  North- 
east of  the  city  rise  the  stern,  snow-capped 
barriers  of  the  Andes,  clear  against  the  blue  ;  to 
the  West,  hidden  by  the  low  coast  range,  lies  the 


ECONOMIC  AND  INDUSTRIAL  PROGRESS    79 

Pacific,  highway  to  future  glories,  while  far  into 
the  South  stretches  the  fertile  Valley  of  Chile,  a 
storehouse  of  wealth  in  forest  and  field,  that  shall 
endure  and  increase  when  the  last  shipload  of 
nitrate  has  been  gathered. 

Of  Lima,  the  ancient  capital  of  Peru,  city  of 
imperishable  memories  instinct  with  the  pathos  of 
a  vanished  civilization  and  a  gentle  race  departed, 
home  of  beautiful  women  and  Court  of  the 
viceroys  of  proud  Spain  ;  of  Bogota  of  the  Holy 
Faith,  the  mountain  capital  of  Colombia;  of 
Caracas,  nestling  in  its  valley  by  the  shores  of 
the  Caribbean  ;  of  Quito,  La  Paz  and  Asuncion, 
the  capitals  of  Ecuador,  Bolivia  and  Paraguay, 
there  is  not  space  here  to  tell.  Generally  speaking, 
it  may  be  said  that,  in  comparison  with  the  bustling 
commercial  centres  of  Argentina  and  Chile  and 
Brazil,  these  Republics  are  still— some  more,  some 
less — in  that  blissful  but  unremunerative  state 
which  prefers  the  certainty  of  a  long  siesta  to  the 
chances  of  any  form  of  arduous  activity.  But 
what  they  lose  in  profitable  opportunities,  they 
gain,  for  the  traveller  at  least,  in  picturesque 
qualities  of  old-world  charm  and  philosophic 
repose,  and  for  the  sake  of  the  wanderers  of  the 
future,  it  may  be  hoped  that  some  of  these  restful 
oases  may  yet  be  spared  by  the  rising  tide  of  South 
America's  prosperous  commercialism. 

Those  who  have  visited  Asuncion,  for  instance, 
bring  away  from  that  altogether  delightful  capital 
lastinc"  memories  of  its  wealth  of  scent  and  colour 


8o  THE   TEN    REPUBLICS 

and  of  the  dole e  far  niente  charm  of  existence  in  a 
land  where  memories  of  departed  glories  mingle 
with  the  fragrance  of  roses  and  jasmine.  Para- 
guay, devastated  by  the  long  wars  and  tyranny  of 
the  fiendish  Lopez,  miserable  years  of  strife  which 
killed  off  nine-tenths  of  the  adult  male  population 
(1868-73),  may  to-day  be  described  as  in  a  period  of 
leisurely  convalescence.  But  the  Paraguay  and  Pil- 
comayo  rivers  are  destined  to  be  the  main  arteries 
of  a  great  traffic  from  Bolivia  and  Brazil,  and 
Asuncion  will  assuredly  hear  those  urgent  voices  of 
the  modern  world  which  shall  rouse  her  from  her 
slumbers. 

With  the  completion  of  the  Panama  Canal,  a 
great  change  must  come  over  the  spirit  of  the  old- 
world  dreams  of  the  Republics  whose  coasts  lie 
upon  the  Pacific,  on  the  north  and  west  of  the  con- 
tinent. The  purchasing  power  and  foreign  trade 
of  Ecuador,  Colombia  and  Peru  evidently  depend 
in  the  first  instance  upon  the  development  of  their 
great  natural  resources  by  increased  means  of 
communication  and  the  aid  of  foreign  capital ;  by 
their  geographical  situation  these  countries  will  be 
the  first  to  reap  the  benefits  of  the  opening  of  the 
world's  new  commercial  highway,  their  long  years 
of  isolation  ended  and  their  territories  thrown  open 
to  many  a  lucrative  enterprise.  To  Ecuador,  in 
particular,  cut  off  from  her  neighbours  on  land  by 
impenetrable  forests  and  high  mountain  ranges,  the 
Panama  Canal  bids  fair  to  be  the  key  which  shall 
open  the  golden  door  of  the  future. 


ECONOMIC  AND   INDUSTRIAL  PROGRESS    81 

Colombia  has  been  well  described  as  the  '' won- 
derland of  opportunity,"  a  wonderland  hitherto 
almost  unexplored  in  many  parts.  **  Measured  by 
the  standard  of  other  countries,"  says  Mr.  John 
Barrett,  '*it  can  be  stated  without  exaggeration 
that  the  Republic,  in  proportion  to  area  and  popu- 
lation, is  the  richest  of  all  in  the  variety  and  extent 
of  its  undeveloped  resources,  fullest  in  promise  for 
future  growth  and  reward  to  mankind."  Its  entire 
coast-line  on  the  Pacific  is  rich  in  gold-bearing 
alluvial  ;  many  deposits  are  already  being  profit- 
ably worked,  but  the  cordillera  region  has  scarcely 
been  touched  by  explorers.  In  addition  to  vast 
mineral  wealth,  Colombia  possesses  great  pastoral 
and  agricultural  resources. 

The  wealth  of  the  mines  of  Bolivia,  like  that  of 
Peru,  became  proverbial  in  Europe  as  far  back  as 
the  sixteenth  century.  It  has  been  estimated  that 
the  mines  gave  to  the  world,  between  the  years 
1540  and  1750,  gold  and  silver  to  the  value  of 
;6^420,ooo,ooo,  most  of  which  went  either  to  Spain 
or  to  the  gallant  British  freebooters  and  buccaneers 
who  lived  upon  the  plunder  of  her  galleons.  But 
Bolivia  of  to-day  is  not  only  a  mineral  treasure- 
house  ;  its  fertile  lands  and  plateaux  on  the  eastern 
slopes  of  the  Andes  present  all  the  conditions  most 
favourable  for  European  settlers  and  for  agri- 
culture, while  the  forests  of  its  lowlands  are  rich  in 
rubber  and  cinchona,  cacao  and  many  kinds  of 
valuable  timber.  A  fact  of  special  interest  lies  in 
the   unusual    strength    of  Germany's  commercial 

G 


82  THE   TEN    REPUBLICS 

position  in  this  Republic.  Our  Teutonic  friends 
realized  at  an  early  period  the  country's  potential 
opportunities  and  Avealth,  so  that,  at  a  time  when 
England  remained  practically  unrepresented  in 
Bolivia,  there  were  German  agents  in  all  her  prin- 
cipal towns.  In  1908  Germany  headed  the  list  of 
importing  countries  ;  since  then  her  position  has 
been  successfully  challenged  by  the  United  States 
and  Great  Britain. 

The  finances  and  commerce  of  Peru  were  seriously 
disturbed  for  years  by  the  losses  which  she  suffered 
at  the  hands  of  Chile,  but  the  last  message  to 
Congress  of  President  Leguia  points  to  steady 
improvement.  Railway  construction  is  being 
actively  advanced,  and  it  is  expected  that  before 
the  completion  of  the  Panama  Canal  the  northern 
and  southern  systems  will  have  been  linked  up  as 
part  of  the  Pan-American  scheme,  that  a  line  will 
cross  the  Andes  and  another  connect  the  plateaux 
of  the  Cordillera  with  the  tributaries  of  the  Upper 
Amazon  and  the  important  inland  port  of  Iquitos. 
Peru  alone,  of  all  the  South  American  Republics, 
enjoys  the  advantage  of  outlets  to  both  oceans, 
the  Amazon  being  navigable  from  Iquitos  across 
2,100  miles  of  the  continent  for  sea-going  vessels, 
which  carry  her  produce  without  transhipment 
to  New  York  and  Europe.  Copper,  silver, 
rubber,  and  sugar  are  her  present  chief  sources  of 
wealth,  but  the  development  of  her  petroleum 
fields  is  full  of  promise. 

Venezuela  has  suffered  in  the  eyes  of  Europe  by 


ECONOMIC  AND   INDUSTRIAL  PROGRESS    83 

reason  of  President  Castro's  quarrels  with  foreign 
concessionaries  and  consequent  complications  with 
foreign  Governments,  but  the  new  and  enlight- 
ened policy  of  President  Gomez  has  successfully- 
put  an  end  to  this  unfortunate  state  of  affairs,  and 
there  now  appears  every  reason  to  hope  that  the 
country's  former  prosperity  will  gradually  be 
restored.  The  foreign  trade  of  the  Republic  in 
1909  showed  a  very  material  increase  over  that  of 
1908,  and,  if  the  Venezuelan  Government  con- 
tinues to  display  due  regard  for  the  security  of 
vested  interests,  it  may  safely  be  assumed  that  the 
capital  required  for  the  construction  of  railways 
and  other  public  works  will  flow  as  freely  into 
Venezuela  as  to  any  other  part  of  the  continent. 

The  question  of  the  improvement  and  extension 
of  internal  communications,  that  is  to  say,  of  rail- 
way construction,  is  clearly  the  crucial  question  in 
South  America  to-day.  The  marvellous  pros- 
perity of  Argentina  affords  conclusive  evidence 
of  the  rewards  that  follow  swiftly  upon  the  adoption 
of  an  energetic  and  liberal  railway  policy,  an 
object-lesson  as  instructive  in  its  way  as  the 
results  of  the  opposite  policy  which  we  see  in 
China  and  Persia  at  the  present  moment. 
Throughout  the  South  American  Republics  the 
progress  of  each  State  may  fairly  be  expressed  in 
terms  of  railways  and  docks ;  given  these,  the 
tide  of  national  prosperity  flows  steadily  in  ever- 
increasing  volume  through  fast-multiplying  chan- 
nels of   human    industry.     Small   wonder,    then. 


84 


THE    TEN    REPUBLICS 


that  the  map  of  the  southern  continent  is  being 
rapidly  intersected  in  every  direction  with  lines 
that  stand  for  railways  under  construction  or  pro- 
jected. A  calculation  from  the  most  recent  figures 
and  information  obtainable  shows  that  the  mileage 
of  railways  built,  building  or  under  construction 
was  approximately  as  follows  : — 


Built. 

Building. 

Projected 

Argentina  (1909) 

16,150 

3,720 

8,400 

Brazil           (1910) 

13,270 

2,900 

5,000 

Chile            (    ,,    ) 

3,384 

1,552 

800 

Uruguay      (    ,,    ) 

1,500 

310 

250 

Bolivia         (    „    ) 

530 

320 

400 

Colombia     (1909) 

500 

— 

1,570 

Ecuador      (    ,,    ) 

316 

— 

— 

Paraguay    (    ,,    ) 

^55 

70 

— 

Peru              (1910) 

1,520 

300 

900 

Venezuela  (1909) 

640 
37,965 

— 

— 

Totals. 

9,172 

17,320 

The  Argentine  railways  make  a  veritable  net- 
work of  lines  stretching  out  on  all  sides  from 
Buenos  Aires  as  a  centre.  The  rapidity  with 
which  their  development  has  proceeded  may  be 
gauged  by  the  fact  that  in  1883  the  Republic 
had  no  more  than  567  miles  open  to  traffic.  The 
most  important  of  the  existing  systems  parallel 
each  other  in  a  manner  which,  under  a  less  en- 
lightened policy,  might  have  been  regarded  as 
dangerously  competitive,  but  which  is  fully 
justified  by  results.    They  extend  northwards  to  the 


ECONOMIC  AND  INDUSTRIAL  PROGRESS    85 

frontier  at  La  Quiaca  ;  thence  to  join  the  Antofa- 
gasta  system  at  Tupiza  ;  thence  to  the  line  which 
opens  up  the  region  of  Lake  Titicaca,  with  La 
Paz  for  its  objective  point.  Southwards  they  ex- 
tend to  the  rapidly  growing  port  of  Bahia  Blanca, 
whence  a  line  is  projected  to  cross  the  Andes  via 
Neuquen,  to  the  Pacific,  connecting  in  turn  with 
Valparaiso  and  Santiago.  And  Buenos  Aires  is  fully 
alive  to  the  need  of  timely  provision  for  handling 
the  sea-borne  commerce,  which  must  grow  far 
beyond  its  present  limits  with  every  year's  develop- 
ment of  the  country  ;  an  indication  of  the  magni- 
tude of  her  scheme  of  expansion  is  given  in  the 
contract  just  signed  with  a  British  Company  for 
port  improvements  costing  no  less  than  ;^5, 500,000. 
When  the  sections  of  longitudinal  railway  now 
under  construction  by  British  contractors  in  Chile 
are  completed,  that  Republic  will  own  a  system, 
connecting  by  means  of  the  Transandine  with 
Argentina,  which  will  extend  from  the  Peruvian 
frontier  on  the  north  to  the  extreme  south  of 
Patagonia.  Bolivia  also  is  constructing  a  system 
which  will  give  La  Paz  three  separate  outlets  to 
the  Pacific.  Brazil,  which  in  1883  had  3,023 
miles  of  line  in  operation,  has  now  through* 
connection  with  Buenos  Aires  to  the  south  and 
expects  before  long  to  connect  with  Pernambuco 
to  the  north.  Present  development  in  this  country, 
however,  is  chiefly  centred  in  the  provision  of 
lines  running  east  and  west.  The  important  line 
from  Santos  to  Corumba  on  the  Bolivian  frontier 


86  THE    TEN    REPUBLICS 

will  ultimately  be  linked  up  with  the  Antofagasta 
system,  thus  making  another  trans-continental 
route.  And,  simultaneously  with  the  building  of 
railways,  a  great  deal  of  excellent  work  is  being 
done  by  the  Brazilian  Government  in  the  improve- 
ment of  the  waterways  which  serve  as  feeders  to 
the  trade  of  the  Amazon,  Paraguay  and  other 
great  rivers.  Thus  the  head-waters  of  the  Ara- 
guaya will  be  connected  with  the  Minas  Geraes 
and  the  Rio  de  Janeiro  railway  systems,  and  the 
Paraguay  river  will  be  connected  with  the  Sao  Paulo 
system  at  Corumba,  thus  providing  an  all-Brazilian 
route  to  Matto  Grosso  and  Bolivia.  The  head- 
waters of  the  Sao  Francisco  are  already  in  com- 
munication with  the  sea,  while  the  rapids  of  Paulo 
Affonso  (probably  the  largest  in  the  world)  are 
bridged  by  a  railway.  Similarly,  the  Uruguay 
river  is  linked  up  with  the  coast  by  a  railway  in 
Brazilian  territory.  The  rapids  of  the  Tocantins 
are  about  to  be  bridged,  so  as  to  allow  of  naviga- 
tion from  the  sea,  at  Para,  to  the  very  heart  of 
Brazil.  More  important  still,  the  short  distance 
between  the  sources  of  the  great  Guapore  and 
Paraguay  rivers  is  to  be  covered  by  another  line, 
which  will  unite  Para  and  Buenos  Aires  through 
the  interior  of  the  continent.  The  achievement  of 
this  undertaking  awaits  only  the  construction  of  a 
railway,  the  insignificant  length  of  which  may  be 
inferred  from  the  fact  that  canoes  are  regularly 
carried  from  one  river  to  the  other,  and  of  another 
short  line  skirting  the  rapids  of  the  Madeira  and 


ECONOMIC  AND  INDUSTRIAL  PROGRESS    87 

Mamore  rivers,  which  is  already  under  construc- 
tion. 

The  course  of  the  marvellous  journey  which 
will  be  made  possible  by  these  undertakings  may 
readily  be  followed  on  the  map.  Starting  at 
Belem  (Para),  the  traveller  will  ascend  the  Amazon 
and  Madeira  rivers  to  the  village  of  Santo  Antonio* 
just  within  the  State  of  Matto  Grosso.  Here  he 
will  take  the  railway  to  the  Guajara-mirim  Rapids, 
whence  another  steamer,  ascending  the  Mamore 
and  Guapore  rivers,  will  land  him  at  the  village 
of  Matto  Grosso,  a  place  already  in  existence 
before  the  foundation  of  the  present  State  capital. 
This  once  flourishing  place,  now  in  decay,  will  no 
doubt  recover  its  importance  with  the  coming  of 
the  railways.  From  the  southern  terminus  of  this 
line  the  traveller  will  proceed,  probably  in  a  small 
stern-wheeler,  to  Corumba,  whence  good  steamers 
ply  down  the  Paraguay  and  Parana  rivers. 

Looking  at  the  continent  as  a  whole,  the  ten 
Republics  should  before  long  possess  50,000 
miles  of  railway  in  working.  Already  nearly 
40,000  miles  have  been  built,  and  the  remainder 
are  under  construction.  There  are,  besides,  defi- 
nitely projected  lines  covering  a  distance  of  20,000 
miles  more,  but  some  of  these  have  been  projected 
for  a  long  time.  The  facts  as  stated  are,  however, 
sufficient  to  show  that  the  Republics  as  a  whole 
are  alive  to  the  necessity  of  developing  their  re- 
sources and  bringing  the  produce  of  the  interior 
by  rapid  transit  to  the  sea-board. 


88  THE   TEN   REPUBLICS 

Although  in  the  past  the  financing  and  con- 
struction of  South  American  railways  has  been, 
to  a  great  extent,  a  British  preserve,  and  akhough 
there  is  every  reason  to  anticipate  that  the  con- 
tinued development  of  the  Continent  will  in  the 
future  depend  largely  on  British  capital  and  en- 
gineering science,  absorbing  at  the  same  time 
large  quantities  of  British  material,  it  is  im- 
possible to  overlook  the  importance  of  the 
changes  which  the  completion  of  the  Panama 
Canal  will  inevitably  effect  in  the  future  com- 
merce and  economics  of  the  northern  and  western 
regions  of  the  continent.  It  would  be  foolish  to 
ignore  the  fact  that  the  political  ascendency  of  the 
United  States  in  Central  America  must  entail 
certain  results  in  the  nature  of  economic  gravita- 
tion. Amongst  many  indications  of  the  United 
States  Government's  recognition  of  the  vital 
importance  of  increasing  by  all  possible  means 
its  commercial  and  political  relations  with  the 
Latin  Republics,  none  is  more  significant  than 
the  official  support  given  to  the  Pan-American 
railway  scheme,  a  scheme  which,  while  purely 
commercial  in  theory,  expresses  by  its  very 
name  political  ambitions  and  ideals  of  a  very 
definite  kind.  Space  does  not  permit  us  to  refer 
at  any  length  to  this  stupendous  conception  ; 
suffice  it  to  say  that,  for  the  present,  the  im- 
mediate objective  lies  in  the  completion,  before 
191 5,  of  through-traffic  between  Mexico  City  and 
the  Isthmus.     Of  the  total  length  of  10,116  miles 


ECONOMIC  AND  INDUSTRIAL  PROGRESS    89 

required  to  connect  New  York  with  Buenos  Aires, 
about  two-thirds  have  already  been  constructed, 
and  the  Pan-American  Railway  Committee  con- 
fidently expects  the  completion  of  the  whole  within 
the  next  few  years.  The  only  important  gap  lies 
in  the  section  between  Panama  and  Lake  Titicaca, 
and  once  the  Isthmus  has  been  pierced  it  may 
safely  be  predicted  that  all  political  and  financial 
difficulties  will  rapidly  be  solved. 

In  conclusion,  a  word  may  be  said  as  to  what 
this  making  of  the  Panama  Canal  will  mean  to 
South  America  on  the  one  hand  and  to  Great 
Britain  on  the  other.  It  will  mean,  in  the  first 
place,  vital  changes  in  the  world's  great  trade- 
routes  and  the  readjustment  of  many  economic 
conditions  and  values.  It  will  halve  the  voyage 
from  Liverpool  to  San  Francisco  and  greatly  re- 
duce the  distance  from  British  ports  to  the  chief 
centres  of  trade  on  the  Pacific  coast  of  North  and 
South  America,  from  Vancouver  to  Valparaiso. 
There  will  be,  for  instance,  a  saving  of  some 
five  thousand  miles  by  the  new  route  thus  opened 
to  Guayaquil,  and  what  this  must  mean  to  the 
development  of  trade  with  Chile  and  Peru  will  be 
self-evident  to  those  who  are  familiar  with  the 
relation  of  distance  to  freights,  and  the  immediate 
effect  of  any  appreciable  difference  in  freight- 
rates  in  determining  the  movement  of  staples.  It 
is  clear  that  New  York's  geographical  propinquity 
to  the  Canal  must  seriously  reduce  the  advantages 
hitherto  enjoyed  by  British  shippers,  and  that,  on 


90  THE   TEN    REPUBLICS 

many  lines  of  international  traffic,  American 
freight  rates  will  be  in  a  position  of  undeniable 
superiority.  By  the  construction  of  the  Canal 
America  will  gain  access  to  the  markets  of  the 
Pacific  sea-board  of  the  southern  continent,  and  to 
Australia  and  Japan,  under  conditions  which  must 
eventually  result  in  formidable  competition  to  our 
overseas  carrying  trade.  Nevertheless,  many 
competent  observers  anticipate  that,  at  the  outset, 
non-American  shipping  will  profit  from  the  impetus 
which  the  canal  will  bring  to  the  trade  of  the 
world.  Mr.  McLellan,  in  the  North  American 
Review^  for  example,  says  : — 

"  Roughly  speaking,  the  distance  by  water  from 
Europe  to  the  principal  ports  of  California  and 
Oregon  is  about  14,000  miles,  and  to  the  principal 
ports  of  Chile  and  Peru  about  10,000  miles. 
Freights,  at  their  present  figure,  make  it  im- 
possible for  small  steamers  of  the  tramp  class  to 
engage  in  trades  which,  owing  to  the  long  dis- 
tances required  to  be  travelled,  offer  no  induce- 
ment. But  when  the  present  14,000-mile  stretch 
is  reduced  to  about  7,000  miles  and  the  10,000 
miles  to  4,000  through  gaining  admittance  into 
the  Pacific  via  Panama  instead  of  via  Cape  Horn, 
European  ship-owners  see  at  a  glance  that  this 
tremendous  reduction  in  mileage  represents  the 
difference  between  profit  and  loss,  and  they  will 
not  hesitate  to  send  their  small,  low-powered 
vessels  into  the  Pacific  to  seek  their  fortunes." 

The  writer  goes  on  to  predict  that  either  a  large 
number  of  new  and    cheaply  built   ships  will   be 


ECONOMIC  AND   INDUSTRIAL  PROGRESS    91 

sent  by  British  and  other  European  owners  to  the 
regions  round  about  Panama,  or  that  the  vessels 
now  employed  in  the  congested  trade  of  the  Far 
East  will  be  diverted  to  the  Pacific.  All  this,  of 
course,  is  largely  surmise,  and  much  will  depend 
on  the  manner  in  which  the  Canal  is  held  and 
administered  as  a  highway  for  all-comers,  but 
come  what  may,  this  much  is  certain,  namely, 
that  the  completion  of  this  titanic  feat  of  engineer- 
ing cannot  fail  to  have  a  notable  and  immediate 
effect  upon  the  fortunes  of  the  nations  in  the  mak- 
ing on  the  Pacific  coast  of  South  America.  This 
is  as  certain  as  the  melancholy  isolation  which 
awaits  the  storm-tossed  seas  that  beat  upon  Cape 
Horn.  If  the  wonderful  record  of  the  Argentine 
Republic's  prosperous  growth  is  not  equalled  and 
even  surpassed  by  the  north-west  of  the  con- 
tinent, it  will  not  be  for  lack  of  opportunities,  but 
by  reason  of  failure  to  rise  to  them. 


CHAPTER  IV 

PANAMA 

It  seems  one  of  the  most  pathetic  facts  of  history 
that  Columbus  should  have  spent  the  last  months 
of  his  adventurous  life  in  fruitless  endeavour  to 
find  a  natural  passage  across  the  Isthmus,  and 
that  he  died  a  disappointed  but  not  disillusioned 
man.  Following  the  lead  thus  set  by  one  of  the 
greatest  of  discoverers,  others  pursued  the  same 
aim,  all  of  them  believing  in  the  existence  of 
a  waterway  connecting  the  Atlantic  with  the 
Pacific  Ocean.  For  many  years  thereafter  scheme 
after  scheme  was  floated,  and  lives  and  money  were 
expended  in  the  effort  to  discover  the  supposed 
secret  of  the  Isthmus.  Successive  Kings  of  Spain 
and  Portugal,  explorers  and  buccaneers,  charla- 
tans and  savants^  scientists  and  treasure-hunters, 
all  vied  with  one  another  in  the  determination  to 
succeed  in  the  quest,  and  all  failed.  A  hundred 
years  ago,  however,  the  investigations  and  re- 
searches of  Humboldt  resulted  in  turning  popular 
interest  in  the  subject  to  a  fresh  and  sounder 
direction.  It  was  the  beginning  of  a  new  era  for 
Panama. 

92 


PANAMA  93 

Christopher  Columbus  first  set  foot  on  the  soil 
of  what  is  now  the  Republic  of  Panama  on 
November  2nd,  1502  ;  and  401  years  afterwards, 
almost  to  a  day — on  November  3rd,  1903 — the 
Republic  of  Panama,  after  much  bloodshed,  form- 
ally declared  its  independence  from  Spain. 

Samples  of  gold  ore  which  Columbus  obtained 
from  the  Indians  having  been  transmitted  to  the 
Court  of  Castile,  the  fanciful  name  of  "  Castle  of 
Gold "  was  conferred  on  the  newly  discovered 
region.  Diego  de  Nicuesa  was  the  first  traveller 
to  follow  Columbus,  and  he  took  possession  of  the 
Isthmus  ''  in  the  name  of  God,"  only,  however,  to 
perish  miserably  with  most  of  his  men  from  the 
effects  of  the  climate  and  slow  starvation. 

After  him  came  Balboa,  the  discoverer  of  the 
Pacific,  whose  fabulous  feats  are  generally  dis- 
missed by  the  history  books  in  a  few  words, 
although  he  should  rank  second  to  Columbus. 
He  was  put  to  death  by  the  Governor  of  Darien 
in  1517,  that  personage  being  jealous  of  his 
achievements.  It  is  noteworthy  that  the  brilliant 
but  infamous  Pizarro  served  as  Balboa's  lieutenant. 
Next,  the  original  settlement  of  **01d  Panama" 
was  founded  (1518)  by  the  Spanish  explorers, 
only  to  be  sacked  and  burned  by  Captain  Henry 
Morgan,  whose  crowning  piratical  achievement  it 
was.  To  this  day  some  crumbling  ruins  of  Old 
Panama  are  the  joy  and  wonderment  of  the 
traveller,  and  in  his  Panama  Patchwork  the  late 
James  Stanley  Gilbert  says  : — 


94  THE   TEN    REPUBLICS 

"  Cloud-crested  San  Lorenzo  g-uards 

Th^Chagres'  entrance  still, 
Tho'  o'er  each  stone  clense  moss  has  grown 

And  earth  his  moat  doth  fill  ; 
His  bastions,  feeble  with  decay, 

Steadfastly  view  the  sea. 
And  sternly  wait  the  certain  fate 

The  ages  shall  decree." 

For  the  hundred  years  1719-1821,  the  Isthmus 
was  composed  of  the  Spanish-ruled  provinces  of 
Panama  and  Veraguas  (''-New  Granada  ") ;  but  in 
the  last-named  year  the  Isthmians  followed  the 
example  of  other  South  American  peoples,  and 
obtained  their  freedom  from  Spanish  rule  without 
bloodshed.  The  actual  date  of  this  ''  declaration  " 
was  November  28th,  i82if 

In  the  days  of  the  gold  discovery  in  California 
in  1849,  a  great  number  of  bad  characters  were 
attracted  to  the  Isthmus,  and  many  robberies  of 
gold  in  transit  took  place.  During  this  time 
there  were  various  suggestions  and  schemes  put 
forward  for  constructing ''a  railway  across  the 
Isthmus. 

The  first  train  ran  into  Panama  on  January  28th, 
1855.  Since  that  date  railway  enterprise  has  made 
some  progress  and  a  new  line  has  been  constructed, 
which  will  take  the  place  of  the  old  railway 
when  the  Canal  is  open.  Most  of  the  freight 
is  now  hauled  across  the  Isthmus  by  night. 
The  freight  traffic  is  generally  heaviest  during 
January  and  February,  when  the  coffee  crops  of 
Ecuador    and    Central    America   are    ''moving." 


PANAMA  95 

The  original  cost  of  the  Panama  Railroad  was 
eight  million  dollars.  It  is  now  the  property  of 
the  United  States  Government. 

For  some  years  a  general  condition  of  public 
insecurity  prevailed  in  Panama,  civil  war  and 
outlawry  being  the  rule  rather  than  the  exception. 
One  party  in  the  state  wanted  annexation  to 
Great  Britain,  but  this  was  over-ruled.  Since  the 
separation  from  Spain  Panama  had  belonged  to 
the  "Granadine  Confederation,"  but  in  1857  New 
Granada  conferred  on  the  Isthmus  the  style  of 
**  State  of  Panama,"  and  she  then  joined  the 
Colombian  Federation.  This,  however,  was  not 
permanent.  The  most  sanguinary  war  in  the 
annals  of  the  Isthmus  was  waged  in  1900-1902. 
The  expulsion  of  the  Jesuits  and  the  confiscation 
of  clerical  property  by  the  Liberals  had  naturally 
aroused  the  enmity  of  the  other  political  party 
in  Panama,  the  Conservatives  or  Clericals.  The 
President,  Sanclemente,  was  deposed  in  1899,  and, 
in  the  civil  war  that  ensued,  the  city  of  Panama 
was  bombarded  for  seventy-two  hours,  and  the 
gunboat  Lautaro  sunk  in  the  bay  with  General 
Carlos  Alban  and  many  seamen.  Thanks  largely 
to  the  good  offices  of  the  Archbishop  of  Bogota 
peace  was  concluded  between  the  Government 
and  the  malcontent  Liberals  in  November,  1902. 
Internecine  strife  continued  for  another  twelve 
months  ;  matters  became  so  serious  that  several 
United  States  warships  were  sent,  and  on  Novem- 
ber 4th,   1903,  the  Republic  of  Panama  declared 


96 


THE   TEN    REPUBLICS 


its  separation  from  Colombia  in  a  manifesto  which 
concluded  thus  :  *'  In  separating  from  our  brothers 
of  Colombia  we  do  so  without  hatred  and  without 
joy.  Just  as  a  son  withdraws  from  his  paternal 
roof,   the    Isthmian    people,   in   adopting   the   lot 


THE   WORLD  S    CROSS-ROADS 


they  have  chosen,  have  done  so  with  grief  but  In 
compliance  with  the  supreme  and  inevitable  duty 
they  owe  to  themselves,  and  that  of  their  welfare. 
We,  therefore,  begin  to  form  a  party  among  the 
free  nations  of  the  world,  considering  Colombia 
as  a  sister  nation.   ..." 


PANAMA  97 

We  turn  now  to  a  consideration  of  the  greatest 
engineering  feat  of  this  age,  a  work  that  atones 
for  much  of  the  misery  that  this  little  country  has 
suffered  and  has  inflicted  on  itself  in  the  past — the 
Panama  Canal.  It  is  confidently  anticipated  that 
the  Isthmian  Canal  will  be  in  working  order  by 
New  Year's  day  of  191 5. 

In  all  great  enterprises  it  is  the  pioneers  who 
suffer — that  is  the  price  paid  for  civilizing  in- 
fluences. The  titanic  task  of  linking  the  Atlantic 
and  Pacific  Oceans  has  been  no  exception  to  this 
rule.  It  was  the  brain  of  Ferdinand  de  Lesseps, 
the  great  Frenchman  whose  genius  gave  us  the 
Suez  Canal,  that  finally  (1878-81)  evolved  the 
idea  of  a  sea-level  canal  through  the  Isthmus. 
A  French  Company  was  formed,  and  for  several 
years  it  worked  on  this  scheme,  only  to  meet  with 
financial  failure  after  the  expenditure  oi  fifty -two 
millions  sterling.  What  was  to  be  done  then  ? 
As  it  happened,  this  shortage  of  money  supplies 
when  the  carrying-out  of  the  colossal  scheme  had 
proceeded  for  some  years  ultimately  produced  a 
determination,  which  was  carried  out,  to  sell  the 
scheme  outright  to  the  Government  of  the  United 
States,  and  the  subsequent  swift-moving  course 
of  events  may  best  be  shown  by  setting  out  the 
following  dates : — 

November  6th,  1903.  New  Republic  of 
Panama  recognized  by  United  States 
of  America. 

H 


98  THE   TEN   REPUBLICS 

November  i8th,   1903.  Canal  Treaty  signed 

at  Washington. 

December  2nd,    1903.  Ratified  by  Panama. 

February   26th,    1904.  Treaty  proclaimed. 

This  agreement — which  incidentally  ordained 
that  the  Government  of  the  United  States  pledged 
itself  to  maintain  the  autonomy  of  Panama — placed 
the  United  States  Government  in  possession  of 
the  286,720  acres  of  land  constituting  the  ''Canal 
Zone,"  the  consideration  being  an  indemnity  of 
;^2, 000,000,  with  an  additional  ^8,000,000  for  all 
the  concessions  and  property  of  the  French 
Company.  Various  preliminaries,  conferences, 
plans,  and  the  thousand  details  inseparable  from 
so  vast  an  undertaking,  occupied  the  next  two 
years.  But  on  June  29th,  1906,  Congress  formally 
authorized  the  beginning  of  the  Canal. 

It  was  decided  that  a  lock-canal  was  preferable 
to  M.  de  Lesseps'  plans  for  a  sea-level  canal,  and 
these  locks  are  of  necessity  the  largest  in  the 
world.  It  should  be  realized  that  the  Isthmus 
runs  in  an  easterly  direction,  and  the  Canal  is 
about  fifty  miles  in  length  frorn  sea  to  sea.  Its 
entrance  on  the  Atlantic  side  is  near  Colon,  and, 
on  the  Pacific  side,  in  the  vicinity  of  Panama. 
The  world's  largest  vessels  will  be  able  to  pass 
through  the  Canal  in  fifteen  hours.  The  whole 
belt  of  land  covered  by  the  Canal  Zone  comprises 
44S  square  miles. 

Beginning  in  deep  water,   the  north  (Atlantic) 


PANAMA  99 

end  of  the  Canal  runs  about  seven  miles  at  sea- 
level  southwards  to  the  Great  Gatun  Dam  and  its 
three  locks  — the  greatest  the  world  has  ever  seen, 
and  a  triumph  of  marine  engineering.  These 
three  locks  raise  the  water-level  to  a  height  of 
85  feet,  and,  four  miles  farther  on,  the  Canal  turns 
south-easterly  in  its  course  to  the  Pacific  side. 
Owing  to  the  soft  character  of  the  subsoil  the  con- 
struction of  this  giant  Dam  proved  one  of  much 
difficulty  and  some  danger.  In  shape  it  is  as 
remarkable  as  in  size,  which  is  due  to  the  con- 
ditions of  the  level.  Thus,  while  it  has  the 
moderate  height  of  115  feet  at  the  crest,  the  diffi- 
culty of  its  treacherous  foundations  has  been  met 
by  spreading  the  base  of  the  Dam  to  the  stupendous 
width  of  2000  feet.  In  length  the  Gatun  Dam  is 
nine  thousand  feet.  Its  construction  has  resulted 
in  the  formation  of  a  huge  lake,  through  which 
the  great  water-way  is  carried  in  a  line  along  the 
course  of  the  Chagres  River,  which  disappears 
into  the  lake.  The  work  of  the  Dam  floods  the 
Chagres  Valley  to  the  sea-level  height  of  85  feet, 
transforming  a  rapid  and  turbulent  river  into  a 
lake  164  square  miles  in  area,  for  which  an  annual 
rainfall  of  100  inches  maintains  an  ample  water 
supply. 

The  Gatun  locks  are  in  duplicate  and  are 
1000  feet  in  length.  A  300 -feet  wide  '^  spill- 
way" at  the  farther  end  of  the  Dam  gets  rid  of 
the  surplus  water  of  the  Lake  at  the  rate  of 
140,000  cubic  feet  per  second.     It  is  important  to 


loo  THE   TEN    REPUBLICS 

remember,  despite  contradictory  statements,  that 
the  tide-levels  of  the  Atlantic  and  Pacific  Oceans 
are  substantially  the  same. 

Some  thirty  miles  from  Gatun,  at  the  south  end 
of  the  Lake,  at  Pedro  Miguel,  is  a  twin-lock,  and 
two  miles  farther,  at  the  south  end  of  Lake  Mira- 
flores,  are  a  pair  of  locks,  after  which  the  Canal 
drops  to  sea-level  again.  To  those  who  have 
passed  through  the  Suez  Canal  with  its  great 
lakes,  it  will  come  as  a  surprise — considering  the 
natural  difficulties  — that,  for  thirty-two  out  of  the 
fifty  miles  of  the  Panama  waterway,  little  cutting  or 
dredging  was  required.  This  is  due  to  the  forma- 
tion of  the  Gatun  Lake,  where  the  splendid  width 
of  looo  feet  will  enable  the  biggest  steamships  to 
proceed  at  *'  full  speed  ahead." 

From  the  thirty-first  to  the  fortieth  mile  of  the 
Canal  line,  it  was  found  necessary  to  cross  the 
Cordilleras  range.  This  excavation  of  the  moun- 
tain soil  for  nine  miles  begins  at  Gamboa  and 
ends  at  Pedro  Miguel,  where  is  the  great 
"  Culebra  Cut,"  the  world's  biggest  cutting. 
The  material  is  not  really  difficult  to  excavate, 
being  largely  argillaceous  sandstone  with  layers 
of  soft  conglomerate,  and  the  serious  trouble  has 
been,  not  the  mere  removal  of  many  million  cubic 
yards  of  soil,  but  the  danger  of  earth  "slides," 
due  to  the  glacier-like  movement  of  soft  sub- 
stances on  the  slippery  clay.  The  striking  example 
of  this  is  the  great  '^Cucharaca  Slide,"  south  of 
Gold  Hill,  half  a  mile  long,  and  covering  twenty- 


io2  TFiE   TEN    REPUBLICS 

seven  acres,  with  its  700,000  cubic  yards  of  soil 
in  motion  at  the  rate  of  14  feet  in  twenty-four 
hours. 

The  Panama  Canal  will  have  a  minimum  depth 
of  41  feet,  and  a  width  ranging  from  300  to  1000 
feet,  except  in  the  locks.  It  has  involved  for  ten 
years  the  labour  of  20,000  to  40,000  men,  aided 
by  the  newest  and  heaviest  modern  appliances 
and  plant.  By  January  ist,  1915,  it  will  have 
cost  at  least  ^60,000,000  over  and  above  the  ten 
millions  paid  for  the  French  and  Colombian 
rights  in  the  original  scheme.  The  whole  of 
the  40,000  workers  on  the  Canal,  together  with 
their  wives  and  families,  are  housed  and  fed  at 
the  cost  and  under  the  direct  supervision  of  the 
Government  of  the  United  States,  whose  medical 
officers  attend  free  of  charge  all  cases  of  illness, 
accidents,  etc.  The  United  States  Government 
owns  and  manages  the  hotels,  looks  after  the 
amusements,  and  practically  regulates  the  lives 
of  all  its  employees. 

This  brings  us  to  the  consideration  of  health 
conditions  on  the  Isthmus,  once  the  most  pesti- 
ferous and  miasmic  of  the  world's  centres.  The 
terrible  toll  taken  by  "Yellow  Jack"  during  the 
working  of  M.  de  Lesseps'  French  Company 
could  not  possibly  be  exaggerated.  The  Canal 
Zone  was  then  an  absolute  plague  centre,  but 
under  the  wise  and  prudent  regime  inaugurated 
by  Colonel  Gorgas,  Chief  Sanitary  Officer,  ap- 
pointed   by   the    United   States   Government,   all 


PANAMA  103 

that  has  changed.  Colonel  Gorgas  and  his  coad- 
jutors set  themselves  to  the  task  of  stamping  out 
the  two  varieties  of  mosquito  that  convey  the 
germs  of  yellow  fever  and  malaria.  Furthermore, 
the  streets  of  Colon  and  Panama  have  been  paved 
with  impervious  materials,  and  the  towns  provided 
with  waterworks  and  sanitary  systems.  The  good 
effects  of  the  American  '*  occupation  "  were  im- 
mediate. The  last  case  of  yellow  fever  reported 
in  Panama  occurred  in  November,  1905,  and 
before  the  close  of  1906  the  dread  disease  had 
vanished  from  Colon. 

In  1909  the  death-rate  for  12,300  white  workers 
on  the  Isthmus  was  only  11*9  per  thousand  as 
compared  with  15*3  in  the  previous  year  ;  whilst 
in  a  negro  population  of  32,000  the  rate  of  19*4 
per  thousand  in  1908  had  fallen  to  11  "9  in  1909. 
As  the  outcome  of  these  efforts  Panama  has  be- 
come in  a  few  years  a  healthy  locality,  where 
white  people  from  Europe  and  North  America 
may  live  in  absolute  safety  and  security,  where 
vigorous  children  may  be  reared  and  brought  up, 
and  where  life  may  be  enjoyed  unmindful  of 
"  climatic  "  fears. 

A  word  must  be  said  of  the  excellent  organiza- 
tion of  the  present  work  on  the  Canal.  America's 
leading  engineering  experts,  who  were  visiting 
the  Canal  Zone  when  the  writer  was  there  last 
November,  assert  that  it  is  being  handled  with 
skill  and  judgment  fully  equal  to  that  displayed 
in  the  greatest  industrial  enterprises  of  the  United 


104  THE   TEN    REPUBLICS 

States.  The  devotion  of  every  officer  of  the  staff 
to  his  chief,  and  the  healthy  rivalry  exhibited  in 
pushing  forward  the  work  in  all  possible  ways, 
are  the  happiest  auguries.  We  have  it  on  the 
authority  of  that  indefatigable  worker  and  organ- 
izer, Colonel  G.  W.  Goethals  (Chief  Engineer  of 
the  Panama)  that  the  Canal  will  be  ready  a  twelve- 
month before  the  allotted  time.  Thus  will  ample 
opportunity  be  afforded  of  testing  fully  the  various 
machinery  and  the  methods  of  operating  the  vast 
locks. 

The  revolution  effected  in  sea-going  trade  by  the 
Suez  Canal  is  destined  to  be  repeated,  but  in  this 
case  the  benefit  will  be  to  the  United  States  and 
not  to  Great  Britain.  Not  merely  will  New  York  be 
several  thousand  miles  nearer  to  the  Panama 
Canal  than  England  (whereby  the  commerce  of 
the  South  American  Republics  will  be  turned  to 
the  advantage  of  New  York  by  something  like 
2,500  miles),  but  the  trade  of  Japan  will  be  largely 
diverted.  England  has  at  present  an  advantage 
of  over  2000  miles  to  Yokohama,  an  advantage 
which  entirely  disappears  as  soon  as  the  Canal  is 
open.  And  Melbourne  will  be  upward  of  500 
miles  nearer  to  New  York  than  is  the  case  to-day, 
while  Hongkong  will  be  350  miles  closer. 

These  are  the  commercial  advantages  to  America. 
What  are  the  strategic?  As  long  ago  as  the  days 
of  President  Grant,  "an  American  canal  American- 
controlled  "  was  his  dictum.  Then  came  Presi- 
dent Roosevelt,  with  his  pronouncement  that  the 


PANAMA  105 

Panama  water-way  ''will  for  defensive  purposes 
double  the  power  of  the  United  States  Navy.  (For 
offensive  purposes  also?  What  would  not  the 
Panama  Canal  have  been  to  America  in  her  war 
with  Spain  in  1897-8?)  And  again,  speaking  at 
Omaha  in  September,  1908;  ''We  are  in  honour 
bound  to  fortify  the  Canal  ourselves,  for  only  by 
so  doing  can  we  effectively  guarantee  its  neutrality 
and,  moreover,  effectively  guarantee  that  it  shall 
not  be  used  against  us."  Mr.  Taft  is  not  less 
emphatic,  and,  in  drawing  the  attention  of  Con- 
gress to  this  necessity,  he  pointed  out  that  by  the 
Hay-Paunceforte  Treaty,  America  was  under  an 
obligation  to  Great  Britain  to  fortify  the  Canal. 
Congress  has  now  voted  the  necessary  appropria- 
tion for  the  fortification  of  the  Canal.  It  may  be 
well  to  print  side  by  side  the  opinions  on  this 
question  of  an  American  and  of  a  British  naval 
authority  : 

Admiral  Mahan,  Admiral  Sir  Cyprian  Bridge. 

When     pierced     by     a  The  real  position  of  the 

Canal    the     Isthmus    will  United  States  will  be  but 

present  a  maritime  centre  little     altered     when     the 

analogous    to   the    mouth  Canal  is  ready  for  use.  .  .  . 

of  the  Mississippi.     They  It  is  difficult  to  see  what 

will    differ    in    this,    that  military  justification  there 

in  the  latter  case  the  con-  could  be  for  providing  the 

verging    water-routes    on  Canal     with      great     and 

one    side    are    interior    to  heavily      armed      defence 

a   great   state    whose    re-  works.     Such  works  could 

sources  they  bear,  where-  be   of  use  only  against  a 


io6 


THE   TEN    REPUBLICS 


as  the  roads  on  which 
either  side  converge  on 
the  Isthmus  lie  wholly 
upon  the  ocean,  the  com- 
mon possession  of  all  na- 
tions. The  control  of  the 
latter,  therefore,  rests 
either  upon  local  control 
of  its  approaches  or  upon 
a  distinctly  preponderat- 
ing navy.  In  naval  ques- 
tions the  latter  is  always 
the  dominant  factor,  ex- 
actly as  on  land  the  mo- 
bile army  —  the  army  in 
the  field — must  dominate 
the  question  of  fortresses 
unless  war  is  to  be  im- 
potent .  .  .,  the  mouth 
of  the  Mississippi  and 
the  Panama  Canal  are 
the  two  supreme  cen- 
tres of  commercial  and 
therefore  of  political  and 
military  interest.  {Sea 
Power. ) 


strong  fleet.  ...  As  long 
as  the  United  States  navy 
has  command  of  the  neigh- 
bouring sea,  invasion  m.ay 
be  left  out  of  consideration. 
The  raid  is  a  much  more 
probable  danger  ;  and  as, 
against  the  Panamd  Canal, 
raids  need  not  come  by  sea, 
the  best,  indeed  the  only 
effective  defence  against 
them  is  that  which  can  be 
furnished  by  a  body  of 
well-equipped  defenders. 
These  may  have  the  sup- 
port of  simple  defence 
works  having  a  moderate 
gun  armament,  but  what 
will  be  immensely  more  im- 
portant to  the  security  of 
the  Canal  than  any  forts  or 
batteries  will  be  the  garri- 
son ;  and  the  numerical 
strength  of  that  garrison 
— which  may  have  to  ward 
off  attacks  on  both  sides 
— is  not  likely  to  be  small. 


Directly  the  Canal  is  opened  we  may  count  on 
an  impetus  to  the  carrying  trade  between  America 
and  the  Australian  Colonies  and  New  Zealand. 
Australia  now  gets  about  ii|  per  cent,  of  her 
imports  (representing  ;{^6,ooo,ooo)  from  the  States 
direct,  and  perhaps  ;^i, 000,000  by  indirect  routes, 


PANAMA  107 

chiefly  through  Great  Britain.  This  latter  trade 
we  may  expect  to  see  disappear  with  Australia 
brought  much  nearer  to  America.  A  somewhat 
similar  remark  applies  to  the  ports  of  New 
Zealand,  where  some  i^i, 500,000  of  imports  come 
from  America  annually.  Again,  with  regard  to 
the  commercial  activities  of  Japan,  that  country's 
imports  of  raw  cotton  can,  as  soon  as  the  Canal  is 
ready,  be  shipped  from  the  Mexican  Gulf  ports 
instead  of  from  New  York,  the  reduction  in  time 
and  in  freights  being  of  course  considerable. 
Japan  is,  in  fact,  going  to  be  the  country  of 
all  countries  to  benefit,  or  so  it  would  appear. 
The  Island  Empire  is  making  satisfactory  strides 
as  one  of  the  important  manufacturing  countries, 
and  her  ability  to  develop  her  commercial  facilities 
is  unquestioned.  For  a  long  while  to  come  the 
British  trade  with  Japan  in  woollen  goods  will  be 
well  maintained,  but  British  exports  of  iron  to 
this  quarter  have  suffered  of  late  years. 

To  Canada,  too,  the  opening  up  of  the  Pacific 
coast  will  be  of  importance.  Between  the  Grand 
Trunk  Pacific  Railway,  with  its  terminus  on  the 
Pacific  coast,  and  the  Panama  Canal  the  fortunes 
of  the  Dominion  will  be  brighter  than  ever  before. 
The  Pacific  coast  of  the  United  States  will  similarly 
be  brought  nearer  to  Europe.  The  produce  and 
products  of  California  will  be  placed  upon  the 
European  markets  more  quickly  and  economically 
than  at  present,  but,  on  the  other  hand,  the 
British  export  trade  to  western   Canada  and  the 


io8  THE   TEN    REPUBLICS 

Pacific  States  of  the  American  Union  will  also 
be  invigorated.  The  sea  route  between  New 
York  and  the  Pacific  ports  south  of  the  Panama 
will  be  lessened  by  the  Canal  by  from  loao  to 
8400  miles,  and  the  saving  from  Liverpool  will 
be  from  2600  to  6000  miles. 

In  1904  the  Canal  Zone  was  divided  into  five 
*'  municipal  districts,"  which  existed  until  1907, 
when  the  four  "  administrative  districts  "  of  Ancon, 
Empire,  Gorgona  and  Cristobal  took  their  place. 
The  governing  Commission  of  the  Zone  grants 
all  liquor  licences,  and  the  establishment  of  saloons 
is  only  permitted  at  certain  points.  The  cost  of  a 
licence  is  twelve  hundred  dollars  United  States 
currency,  and  there  are  less  than  forty  saloons 
within  the  Zone's  limits.  The  Zone  police  num- 
ber 200  officers  and  men. 

Panama  as  a  whole  covers  an  area  of  32,000 
square  miles,  being  about  half  the  size  of  Uru- 
guay. It  is  almost  entirely  surrounded  by  sea, 
possessing  a  land  frontier  of  only  350  miles  as 
compared  with  a  coast-line  of  1245  miles,  i.e. 
767  miles  on  the  Pacific  and  478  miles  on  the 
Caribbean  Sea.  Thanks  largely,  of  course,  to 
the  influx  of  immigrants  due  to  work  on  the 
Canal,  the  population  of  Panama  (including  the 
''Zone,"  but  excluding  an  Indian  population  of 
80,000)  has  risen  from  311,000  in  1904  to  nearly 
half  a  million  to-day.  Of  this  population  Panama 
City  has  40,000,  Colon  15,000,  David  12,000,  and 
Bocas  del  Toro  (an  Atlantic  port)  some  10,000. 


PANAMA 


[09 


Sefior  Don  Pablo  Arosemena  was  elected 
President  in  1910.  When  in  Panama,  the  writer 
was  granted  an  audience  by  President  Arosemena, 
and  found  him  a  man  of  exceptional  ability  and 
extremely  anxious  to  give  the  youngest  Republic 
of  Latin  America  an  efficient  government.  He  was 
particularly  proud  of  the  fact  that  his  country  was 
free  from  debt  and  that  there  were  several  millions 
of  dollars  in  the  State  Treasury.  He  is  determined 
to  rule  the  country  economically,  and  impresses 
one  as  a  man  of  character  who  will  not  easily  be 
swayed  from  the  path  of  duty.  He  thus  described 
the  condition  of  the  country  to  the  writer  : — 

''We  do  not  owe  a  cent.  We  pay  on  sight. 
We  have  $6,000,000  (i^i, 200,000)  deposited  in 
New  York  Banks,  drawing  4^  per  cent  ;  and 
$1,000,000  in  cash  deposited  in  banks  at  Panama, 
of  which  the  sum  of  $300,000  is  to  secure  the  silver 
currency.  We  have  no  paper  money.  The 
Government  is  honestly  and  economically  con- 
ducted, and  does  not  spend  a  dollar  without 
careful  consideration." 

The  President  is  elected  for  four  years,  and  is  not 
eligible  for  a  second  term.  He  appoints  all  the 
higher  officials  in  the  State,  and,  in  the  event  of  his 
death  or  disability,  executive  powers  devolve  on 
three  persons  styled  "Designadores."  TheGovern- 
ment  is  a  single -chamber  one.  The  National 
Assembly  is  elected  in  the  proportion  of  one 
Deputy  to  every  10,000  inhabitants.  The  Presi- 
dent's salary  is  $18,000,  and  he  is  empowered  to  veto 
any  measure  without  reference  to  the  Assembly. 


no  THE   TEN    REPUBLICS 

Panama,  as  we  have  seen,  has  no  national  debt. 
In  this  she  is  not  only  at  a  great  advantage  as 
compared  with  some  other  South  American 
countries,  but  with  the  opening  of  the  Canal,  it 
is  hoped,  she  will  find  herself  in  a  sound  finan- 
cial position.  Conditions  of  life  and  progress  on 
the  Isthmus  are  upon  the  whole  favourable.  If 
the  moral  standard  is  generally  not  too  high,  we 
have  to  remember  that  Panama  is  only  now  slowly 
and  painfully  emerging  from  long  periods  of  civil 
war  and  defective  moral  conditions.  Religious 
toleration  is  granted,  and  under  the  wise  control 
of  Sefior  Melchior  Lasso  de  la  Vega  the  Depart- 
ment of  Public  Instruction  has  accomplished  effi- 
cient work.  In  the  capital  there  are  Normal  Schools 
for  girls  and  for  young  men,  a  National  College 
of  Language  and  Commerce,  a  School  of  Arts 
and  Crafts,  a  National  School  of  Music  and 
Declamation,  and  an  institution  for  the  education 
of  San  Bias  Indian  boys.  The  number  of  illiter- 
ate Panamanians  is  small  ;  nearly  all  the  popula- 
tion being  able  to  read  and  write.  There  is  no 
standing  army. 

Such  is  the  Panama  of  19  ii — a  virile  nation 
inhabiting  a,  country  rich  in  resources,  full  of 
hope  for  the  future,  resolute  in  the  knowledge 
that  their  great  Canal  enchains  the  attention  of 
the  whole  commercial  and  scientific  world,  and 
determined  to  win  the  race  for  intellectual  and 
industrial  advancement. 


CHAPTER   V 

THE    ARGENTINE    REPUBLIC 

*'  No  country  known  to  me,"  wrote  the  late 
Major  Martin  Hume,  '' impresses  upon  a  visitor 
from  Europe  so  forcibly  as  the  Argentine  the 
unlimited  possibilities  of  its  soil.  Travelling 
hour  after  hour  by  a  railway  straight  as  a 
line  over  gently  undulating  or  perfectly  flat 
plains,  stretching  on  all  sides  as  far  as  the 
eye  can  reach,  the  observer  is  struck  by  the 
regular  ripple  of  the  rich  grass,  like  the  waves  of 
the  sea,  as  the  wind  blows  over  it.  Here  and 
there  little  clumps  of  eucalyptus  slightly  break 
the  monotony  of  the  landscape,  and  a  gleam  of  a 
bright  green  alfalfa  field  occasionally  relieves  the 
eye.  Far  away  at  rare  intervals  gleaming  white 
walls  and  turrets  surrounded  by  eucalyptus  groves 
mark  the  position  of  an  'estancia,'  and  innumer- 
able herds  of  cattle,  sheep,  and  almost  wild  troops 
of  horses  everywhere  testify  to  the  richness  of  the 
pasture." 

Major  Hume's  attractive  picture  of  the  third 
largest  of  the  South  American  Republics  is  not 
exaggerated.  Argentine  is  one  of  the  rising 
countries  of  the  New  World.     In  1883  the  three 

III 


112  THE   TEN    REPUBLICS 

principal  articles  exported  from  Argentina  to  the 
United  Kingdom  were  officially  described  as 
^' skins,  bones,  and  untanned  hides,"  valued  at 
^^400,000.  Last  year  the  total  value  of  her  sales 
to  Great  Britain  was  roughly  ^16,000,000,  and  of 
her  purchases  ^20,000,000,  while  the  value  of  her 
total  trade  with  all  the  world  was  i^  145, 000, 000. 
In  1909  nearly  3,000,000  tons  of  wheat  were 
exported  from  Argentina,  and  last  year  seventy- 
two  per  cent  of  the  frozen  and  chilled  meat 
imported  into  England  came  from  the  rich  fields 
of  this  young  giant  among  nations.  That  Great 
Britain  has  poured  forth  a  steady  stream  of  gold 
into  this  country  for  the  development  of  these 
food-producing  areas  of  the  New  World  is  only  a 
natural  result  of  the  struggle  for  new  sources  of 
food  supplies  alluded  to  in  a  previous  chapter. 

Argentina's  boundaries  consist  of  the  Atlantic 
Ocean  and  the  Republics  of  Chile,  Brazil,  Bolivia, 
Uruguay  and  Paraguay.  It  has  an  extent  of 
1,135,840  square  miles,  equal  to  about  two-fifths  of 
the  whole  area  of  the  United  States.  The  popu- 
lation of  Argentina  (191 1)  may  be  estimated  at 
seven  million  souls,  or  about  six  persons  per  square 
mile,  as  compared  with  nearly  thirty  persons  per 
square  mile  in  the  United  States.  The  Argentine 
Census  is  lacking  in  the  most  fundamental  of 
social  statistics,  the  returns  of  the  population. 
Official  reports  provide  with  extreme  accuracy  an 
enumeration  of  the  cattle,  horses,  sheep,  asses, 
mules,    swine,    goats,    ostriches,    ducks,    geese, 


NaUroads  in  Operation. 
"       under  Construction 
Scales 

I S3B=d  Milei 


200  *O0  6PO 


Kilometres 


114  THE   TEN   REPUBLICS 

cocks,  hens,  chickens  and  pigeons,  yet  though 
sex  and  age  are  fully  detailed  for  the  poultry  enthu- 
siast, no  such  classification  nor  that  of  nation- 
ality or  condition  is  available  with  regard  to  the 
enumeration  of  the  Argentine  people.  It  is  to  be 
hoped  that  the  next  Census  of  the  Republic  will 
remedy  this,  and  that  we  shall  have  an  enumera- 
tion of  the  people  with  age,  sex,  nationality  and 
occupation,  and  other  information  necessary  for 
a  thorough  study  of  the  movement  of  the  popula- 
tion. 

The  climate  may  not  unfairly  be  classed  as  one 
of  infinite  variety,  going  from  tropical  in  the  north 
to  arctic  in  the  south,  but  lying  mainly  in  the 
temperate  zone. 

The  main  intention  in  this  chapter  being  to 
present  a  picture  of  commercial,  agricultural, 
social,  economic  and  political  Argentina  of  to-day 
and  of  its  future  development,  the  briefest  of 
historical  sketches  must  suffice. 

Subsequent  to  the  discovery  of  the  river  La 
Plata  in  1508  and  the  foundation  of  Buenos  Aires 
in  1536  by  Mendoza,  the  struggle  was  for  a  long 
period  between  the  Spanish  adventurers  and  the 
Indians — not  the  Aztec  and  Inca  races  as  in 
Mexico  and  Peru,  but  a  hardy  and  nomadic  people 
who  for  years  offered  a  tenacious  resistance  to  the 
invader.  The  first  settlement  of  Buenos  Aires  was 
burned  and  sacked  by  them,  but  they  were  gradu- 
ally pushed  farther  into  the  interior,  and  in  1576 
Juan  de  Garay,  as  Viceroy,  renewed  a  determined 


THE  ARGENTINE   REPUBLIC  115 

effort  to  ''colonize."  In  1776,  the  year  of  North 
American  Independence,  the  country  was  con- 
sidered powerful  enough  by  its  Spanish  overlords 
to  become  a  separate  Viceroyalty,  but  in  1810  the 
war  for  South  American  independence  began,  and 
the  Spaniards  were  defeated  and  expelled  in  1814. 
On  July  9th,  1816,  a  Constitutional  Assembly  at 
Tucuman  proclaimed  the  autonomy  of  the  United 
Provinces  of  the  Plata  River  ("  Provincias  Unidas 
del  Rio  de  la  Plata"),  and  in  1824 the  more  demo- 
cratic regime  of  a  President  of  the  Republic  took 
the  place  of  the  first  instituted  Supreme  Dictator- 
ship. About  Christmas  1825  a  war  broke  out 
with  Brazil  in  consequence  of  her  attitude  towards 
Uruguay,  who  had  recently  seceded  from  the 
Argentine  Confederation.  This  trouble  was  settled 
by  a  treaty  of  peace  signed  in  February,  1827, 
which  provided  for  the  independence  of  Uru- 
guay. 

From  1829  Argentina  was  ruled  for  more  than 
twenty  years  by  the  reactionary  Rosas. 

Among  its  modern  rulers,  Celman  had  to  be 
deposed  after  bringing  his  country  to  financial 
ruin.  Don  Manuel  Quintana,  who  became  Presi- 
dent in  1904,  died  in  1906  before  his  term  of 
power  had  expired.  The  Vice-President,  Dr. 
Jose  Figueroa  Alcorta,  filled  the  gap  until 
October,  1910  (the  term  of  office  being,  not  as  in 
other  South  American  Republics,  for  six  instead 
of  four  years),  when  the  present  President,  Dr. 
Roque  Saenz  Peiia,  was  elected. 


lib  THE   TEN   REPUBLICS 

The  Constitution  of  the  Argentine  Nation,  the 
title  by  which  the  country  is  now  known,  was  pro- 
mulgated on  May  Day,  1853,  and  took  the  Federal 
Union  of  States  as  its  pattern.  This  form  is 
identical  with  that  of  the  Constitutions  of  four 
other  Western  nations,  viz.  the  United  States  of 
America,  Mexico,  Brazil  and  Venezuela. 

It  vests  the  legislative  power  in  a  two-chamber 
National  Congress  and  the  executive  power  in 
the  hands  of  a  President  assisted  by  a 
Cabinet. 

The  *' Supreme  Court"  of  Argentina  is  a 
tribunal  of  five  judges,  after  which  there  are  four 
Courts  of  Appeal  (each  of  three  judges)  and 
Courts  of  '*  First  Instance."  Each  province  has 
its  own  judiciary. 

The  Republic  is  politically  divided  into  fourteen 
provinces,  and  one  Federal  District  (Buenos 
Aires,  the  capital).  The  fourteen  provinces  are 
practically  self-governing  as  regards  their  internal 
administration.  The  ten  territories  are  ruled  by 
a  Governor,  who  is  appointed  by  the  President. 
The  Federal  District  is  under  the  superintend- 
ence of  a  Mayor  {intendente)  and  a  Municipal 
Council. 

The  populations  of  the  half-dozen  leading  cities 
may  be  thus  roughly  summarized  :  Buenos  Aires, 
1,320,000;  La  Plata  (the  capital  of  Buenos  Aires 
province),  80,000 ;  Cordoba,  60,000 ;  Tucuman, 
55,000;  Rosario,  180,000;  Santa  Fe,  33,000; 
Parana,  30,000;  Mendoza,  51,000;   Bahia  Blanca, 


THE   ARGENTINE    REPUBLIC  117 

37,000;  and  Corrientes,  20,000.  The  three  biggest 
centres  of  the  sea-going  trade  are  Buenos  Aires, 
Bahia  Blanca  and  Rosario. 

As  usual  with  these  new  countries,  the  demand 
of  Argentina  is  for  more  people.  It  has  been 
said,  indeed,  that  but  for  immigration  the  popu- 
lation would  be  in  danger  of  not  increasing.  The 
figures  on  the  point  are  certainly  instructive. 
The  birth-rate  among  the  Italian  residents  is  very 
considerably  higher  than  that  among  the  other 
colonists,  as  the  following  birth-rates  per  thousand 
for  1904  show:  Italians,  175;  Spaniards,  123; 
Germans,  96 ;  Uruguayans,  93 ;  English,  92  ; 
Argentines,  85  ;  and  French  74. 

Argentina  is  Italy's  finest  colony ;  of  the 
1,750,000  foreigners  (more  than  one-third  of  the 
total  population)  in  the  Republic  in  1909,  843,540 
were  Italians,  while  424,085  were  Spaniards, 
104,990  French,  and  the  rest  English,  Swiss, 
Germans,  Austrians  and  other  nationalities. 

It  will  be  seen  that  the  preponderance  of  the 
Italian  and  Spanish  colonists  is  quite  startling, 
and  it  is  being  well  maintained.  The  French  are 
declining  in  numbers.  The  rate  of  European 
immigration  has  risen  from  some  4000  in  1857  to 
a  quarter  of  a  million  in  1908,  while  the  following 
recent  figures  show  that  the  number  of  immigrants 
has  doubled  itself  within  five  years:  1904,  125,567; 
I905)  i77>ii7;  1906,  252,536;  1907,  209,103; 
1908,  255,710. 

Argentina   spends   more    money  on    educating 


ii8  THE   TEN   REPUBLICS 

her  children  than  any  country  save  Australia. 
Primary  education  is  secular,  and  is  free  and  com- 
pulsory for  children  from  six  to  fourteen  years 
old.  The  children  of  the  wealthy  are  frequently 
sent  to  be  educated  in  EuropCc  In  1910  there 
were  6371  primary  schools  (public  and  private) 
with  659,460  pupils.  Between  1885  and  1904  the 
children  of  school-going  age  attending  schools 
increased  from  25  to  45  per  cent,  of  whom  only  a 
fraction  could  read  or  write.  As  for  secondary 
education  (not  compulsory)  there  are  twenty-six 
national  colleges  maintained  by  the  Government 
with  some  five  thousand  pupils,  and  nearly  double 
that  number  of  normal  schools.  There  are  Uni- 
versities at  Buenos  Aires,  Cordoba,  La  Plata, 
Santa  Fe  and  Parana. 

The  capital  has  its  ''National  School  of  Com- 
merce," which  is  doing  admirable  work  in  the 
education  of  accountants,  translators,  etc.  Other 
state-aided  colleges  of  commerce  are  at  Cordoba 
and  Bahia  Blanca.  There  is  a  "School  of 
Mines  "  at  San  Juan,  an  Agrarian  and  Veterinary 
School  at  Santa  Catalina,  a  National  School  for 
Pilots,  and  the  Viticultural  School  at  Mendoza. 
Every  year  a  number  of  scholars  from  each  of  the 
provinces  are  sent  abroad  at  Government  expense 
to  complete  their  studies. 

An  institution  which  does  the  State  great  credit 
is  the  finely-equipped  Industrial  School  in  Buenos 
Aires.  Here  are  taught  trades  and  crafts  of  every 
description,  special  attention  being  given  to  those 


THE   ARGENTINE   REPUBLIC  119 

occupations  upon  which  the  industrial  future  of 
the  country  would  seem  to  depend.  There  are 
also  National  Museums  of  Fine  Arts,  of  History, 
and  of  Natural  History,  as  well  as  the  National 
Conservatoire  of  Music  and  School  of  Drawing. 
Agricultural  Stations  are  maintained  at  San  Juan, 
Bella  Vista,  Tucuman,  and  Terna. 

Argentina  is  a  country  of  conscription.  Every 
Argentine  subject  from  the  age  of  twenty-one  is 
liable  for  naval  or  military  service — ostensibly 
for  two  years  and  one  year  respectively,  but  in 
practice  these  periods  are  materially  lessened, 
owing  to  exceptions  in  favour  of  those  who  have 
attended  shooting  ranges  and  obtained  classifica- 
tions as  good  shots,  which  number,  thanks  to 
the  systematic  military  training  provided  and 
encouraged  by  educational  and  municipal  authori- 
ties, is  very  considerable.  The  gauchos  of  the 
plains  especially,  and  indeed  most  Argentines,  are 
good  horsemen,  so  that  their  period  of  training 
for  the  cavalry  branch  is  much  shorter  than  would 
be  the  case  in  Europe. 

This  system  of  conscription  affords  about  15,000 
men  annually  for  regular  service,  and  the  regula- 
tions governing  the  transference  of  these,  first  to 
the  ordinary  reserve  force  until  the  age  of  thirty, 
and  afterwards  to  the  *'  National  Guards,"  from 
whom  service  in  time  of  war  only  is  required, 
provides  a  force  of  about  150,000  trained  men 
for  the  army  and  25,000  for  the  navy,  who  can 
be  called  upon  for  active  service.     The  permanent 


i2o  The  ten  republics 

army  consists  roughly  of  20,000  men,  officers, 
and  staff  attendants.  It  is  noteworthy  that  the 
German  principles  of  military  training  have  been 
very  largely  adopted,  both  in  the  conscript  system 
and  in  the  more  specialized  training  provided  in 
military  colleges  and  schools  for  staff  and  petty 
officers.  The  uniform  also  is  of  German  pattern. 
The  infantry  weapon  is  the  Mauser  rifle  and  the 
artillery  arm  is  the  Krupp  gun. 

With  a  thousand  miles  of  splendid  sea-line  on 
the  Atlantic  to  protect  and  no  outlet  save  the 
Pacific  on  the  coast  of  that  name,  an  efficient  navy 
is  even  more  vital  to  Argentina  than  a  good  army. 
But  although  on  the  sea,  her  people  cannot  be  said 
to  be  of  it,  and  in  the  British  sense  of  the  word 
they  are  not  a  sea-faring  race— in  fact,  despite 
her  vast  overseas  trade,  Argentina's  mercantile 
marine  does  not  much  exceed  a  tonnage  of 
100,000.  It  follows  that  her  navy  does  not  reach 
large  dimensions,  though  recently  two  battleships 
of  the  Dreadnought  type,  each  of  23,000  tons, 
and  fifteen  destroyers  of  850  tons  each  have  been 
added  to  the  fleet.  At  Belgrano— Bahia  Blanca 
— a  naval  port  has  arisen,  capable  of  accommodat- 
ing ships  of  12,000  tons. 

Railway  expansion  has  played  a  very  important 
part  in  the  development  of  the  Republic.  The 
following  figures  illustrate  the  distribution  of 
British  capital  in  Argentina  a  couple  of  years 
ago,  but  an  estimate  made  in  191 1  by  Mr. 
Thomas    Brewer,   editor   of  the   South   American 


THE   ARGENTINE   REPUBLIC  121 

Journal^    puts    the    British    capital     invested    at 
^294,514,644. 

Raihvays          .  .  .  137,845,000 

Banks               .  .  .  8,580,000 

Tramways       .  .  .  8,010,986 

Other    Enterprises  .  .  20,910,580 

175.346,566 

France  came  next  with  railway  and  harbour 
investments  totalling  up  to  about  ;^ 2 2, 000, 000, 
followed  by  Germany  with  ;^  12,000,000,  mostly 
in  banks  and  trams,  and  by  Belgium  with  a 
modest  four  millions.  Could  any  figures  be  more 
eloquent  of  the  preponderance  of  British  interests 
in  this  country? 

It  was  in  1854  ^hat  Buenos  Aires  granted  the 
first  railway  concession  in  Argentina.  It  was  for 
merely  thirteen  miles  of  line  running  westward 
from  the  capital,  and  it  began  working  in  1857. 
Between  that  date  and  1909  the  railway  mileage 
increased  to  16,600  miles,  this  representing  an 
average  construction  of  new  line  at  the  rate  of  319 
miles  per  annum.  La  Pampa  is  the  territory  with 
the  greatest  mileage  in  railways,  and  it  is  esti- 
mated that  this  mileage  is  likely  to  be  doubled  at 
no  distant  date.  The  total  railroad  mileage  of  the 
country  is,  in  round  figures,  20,000,  including 
railroads  under  construction,  with  an  additional 
5000  miles  projected. 

The  pioneer  of  all  these   lines  was  the  Buenos 


122  THE   TEN    REPUBLICS 

Aires  Western,  and  the  largest  to-day  is  the 
Buenos  Aires  Southern,  formed  in  1862.  Other 
principal  great  railway  companies,  most  of  them 
British,  are  the  Central  Argentine,  Buenos  Aires 
and  Pacific,  Argentine  Great  Western,  Cordoba 
Central  and  its  Buenos  Aires  extension,  Argentine 
North  Eastern,  Entre  Rios  and  Cordoba  and 
Rosario.  The  receipts  of  all  the  different  railways 
in  1909  came  to  over  twenty  millions  sterling,  with 
a  total  of  fifty  million  passengers,  and  a  movement 
of  nearly  thirty-two  million  tons  of  goods. 

The  financial  position  of  the  Republic  is  sound, 
though  it  is  generally  believed  that  Congress 
ought  to  be  able  to  produce  a  more  satisfactory 
Budget.  Its  National  Debt  (external  and  internal) 
amounts  to  i^88,6oo,ooo,  which  is  a  slight  decrease 
since  1900,  but  when  the  present  resources  of  the 
country  are  compared  with  those  of  ten  years  ago 
the  proportionate  burden  is  not  more  than  half 
what  it  was  then.  The  revenue  of  the  Govern- 
ment last  year  exceeded  ^24,000,000.  Like  the 
Public  Debts  of  most  of  the  other  Republics  it 
originated  in  the  necessity,  at  the  close  of  the  long 
and  exhausting  struggle  with  Spain,  for  credit  to 
be  obtained  for  the  development  of  the  country's 
resources  and  the  maintenance  of  its  political  and 
financial  stability. 

The  chief  feature,  as  regards  finance,  of  the 
Presidential  Message  of  May  nth  of  this  year  is 
the  announcement  that  an  external  loan  of 
^12,000,000     will     be     necessary.     The    Budget 


THE   ARGENTINE   REPUBLIC  123 

exceeds  last  year's  by  ^6,300,313.  Extraordinary 
expenses  have  been  in  connection  with  the  cen- 
tenary celebrations  and  the  partial  loss  of  the 
harvests,  which  necessitates  State  help  to  farmers 
for  the  purchase  of  seeds  next  year.  The  imports 
for  the  year  now  ended  were  ;^7o, 354,000  and  the 
exports  ;^74,525,200.  The  Caja  de  Conversion 
holds  ;^39, 200,000  gold  and  the  Banco  de  la 
Nacion  ;^32, 600,000.  There  were  redeemed 
during  1910  external  loans  to  the  extent  of 
;{^i,  100,000.  The  internal  duties  produced 
i;2,2i5,634. 

A  change  in  the  form  of  the  currency  was  fore- 
shadowed by  the  Conversion  Law  of  1899,  whereby 
the  paper  money  is  convertible  at  the  rate  of  ^4 
centavos  gold  to  the  paper  peso^  and  for  this  pur- 
pose the  Conversion  Office  possessed  in  March, 
1910,  a  gold  reserve  of  over  ^^40,000,000.  The 
nominal  monetary  unit  is  the  gold  peso  of  100 
centavos^  worth  47*61  pence,  but  the  actual  unit  is 
the  paper  peso  of  20*952  pence.  There  is  also  a 
silver  peso  worth  about  17  pence,  and  50,  20,  10 
and  5  centavos  pieces.  Nickel  coins  are  of  20,  10 
and  5  centavos.  The  Government  deserves  great 
credit  for  the  sensible  way  it  has  dealt  with  the 
currency,  and  the  next  step  should  take  the 
Argentine  to  a  gold  standard. 

There  are  four  big  Argentine  banks  having 
London  offices,  viz.  the  London  and  River  Plate 
Bank,  the  Anglo-South  American,  the  British 
Bank  of  South   America,  and    the    London  and 


124  THE   TEN    REPUBLICS 

Brazilian  Bank.  The  United  States  does  not  yet 
possess  a  single  banking  establishment  in  South 
America,  though  there  has  been  considerable  talk 
of  establishing  one.  The  bank  deposits  last 
year  were  over  looo  million  pesos  and  nearly 
i^io,ooo,ooo  gold.  The  banking  business  is  con- 
ducted on  sound  principles  and  is  largely  influ- 
enced by  British  methods. 

In  1883  the  Republic  adopted  protection,  and  in 
1884  the  tariff  imposed  a  duty  of  50  per  cent  on 
firearms,  powder,  alcohol,  playing-cards,  perfumes, 
tobacco,  snuff,  and  wax  matches,  and  of  40  per 
cent  on  hats,  clothes,  shoes,  furniture,  carriages 
and  harness,  rockets  and  wooden  matches.  As, 
on  the  other  hand,  many  articles  essential  to  the 
agricultural  and  commercial  development  of  the 
land  were  admitted  for  a  nominal  tariff,  it  has 
been  held  to  work  well.  But  Senor  Pillado,  in 
his  thoughtful  study  Politico-Commercial  Arge7i- 
tinUy  remarks:  "For  a  number  of  years  Pro- 
tection has  been  a  heavy  obstacle  to  the  progress 
and  expansion  of  our  country.  Most  sincerely  do 
I  declare  that  we  all  ought  to  use  our  utmost 
efforts  to  reform  a  financial  system  grounded  on 
such  fundamental  errors  as  protective  tariffs." 

Buenos  Aires,  the  capital  city  of  Argentina, 
was  a  city  of  some  importance  even  in  1762,  though 
contemporary  accounts  and  journals  emphasized 
its  unsanitary  and  sordid  condition.  All  that  has 
been  changed  now.  The  town  is  situated  on  the 
right  bank  of  the  estuary  of  the   river  La  Plata. 


THE   ARGENTINE   REPUBLIC  125 

Its  magnificent  docks,  finished  in  1900,  have 
accommodation  for  twenty  million  tons  of  ship- 
ping. Works  are  now  in  course  of  construction 
for  the  enlargement  of  the  existing,  and  the  pro- 
vision of  new,  accommodation  for  an  additional 
two  million  tons  of  shipping.  The  work  includes 
four  new  docks  with  quays  extending  for  a  length 
of  over  3  miles,  and  the  erection  of  warehouses 
covering  100  acres  of  floor  space  at  a  cost  of 
i^5, 500,000.  The  well-known  British  firm  of 
Messrs.  C.  H.  Walker  and  Co.  have  the  contract, 
and  Messrs.  Levesey,  Son  &  Henderson  are  the 
engineers. 

The  public  and  other  buildings  of  the  city  at 
once  strike  the  eye.  The  Exchange  is  an  impres- 
sive building,  and  the  Jockey  Club  has  few  rivals 
anywhere.  (Its  entrance  fee  is  ;^300.)  Horse- 
racing  is  the  great  national  pastime,  but  the 
bookmaker  is  unknown,  though  it  must  not  be 
concluded  from  this  that  betting  does  not  exist. 
On  the  contrary,  it  is  practised  to  excess,  the  Jockey 
Club  itself  taking  the  place  of  the  private  book- 
maker and  issuing  betting  tickets  to  the  public  on 
lines  similar  to  those  of  the  French  pari-wutuel 
system.  In  fact,  betting  is  so  much  a  part  of 
national  life  in  Argentina  that  the  sums 
wagered  on  horses  and  spent  in  lottery  tickets  are 
recorded  in  municipal  statistics.  In  1908  about 
;{^8,ooo,ooo  represented  the  open  and  public  gam- 
bling in  Buenos  Aires,  the  amount  of  private 
wagers  and  sums  exchanged  at  cards  being  impos- 


126  THE   TEN   REPUBLICS 

sible  to  estimate.  Many  wealthy  men  go  in  for 
breeding  racehorses,  and  it  was  here  that  King 
Edward  the  Seventh's  celebrated  Diamond  Jubilee 
changed  hands  for  ^^30,000. 

Buenos  Aires  naturally  received  a  great  impetus 
from  the  Centennial  Exhibition  held  in  1910— a 
group  of  exhibitions  the  chief  of  which  were  the 
Railway  and  the  Agricultural  Exhibitions.  The 
British  section  of  the  Railway  Exhibition  was  one 
of  the  finest  of  the  kind  ever  arranged  ;  it  eclipsed 
all  the  others  and  did  great  credit  to  British  rail- 
way builders. 

The  Press  of  this  city  deserves  special  mention. 
There  are  412  publications  in  the  native  language 
(Spanish),  22  in  Italian,  8  British,  8  French, 
8  German,  and  i  Arabic,  in  addition  to  those 
of  several  other  foreign  communities.  Palermo 
Park  and  the  Zoological  Gardens  are  beautiful 
resorts.  The  theatres  and  concert  halls  are  of 
the  most  modern  description,  and  the  fact  that 
Madame  Melba  netted  ;^40,ooo  from  a  compara- 
tively brief  concert  tour  in  South  America  gives 
some  idea  of  the  money  that  South  Americans  are 
willing  to  spend  in  this  way. 

The  extent  of  the  development  of  Argentine 
trade  may  be  gathered  from  a  comparison  of  its 
present  figures  with  those  of  twenty-five  years  ago. 
In  1883  the  value  of  its  exports  and  imports 
together  amounted  to  under  25  million  sterling, 
a  sum,  it  is  true,  nearly  twenty-five  times  as  large 
as  that  of  a  hundred  years  previously,  but  only  a 


THE   ARGENTINE   REPUBLIC  127 

seventh  of  its  amount  at  the  present  day,  which  is 
roughly  144^  millions.  Such  statistics  require  no 
comment  and  certainly  no  panegyric.  In  1909, 
again,  the  export  of  agricultural  products  repre- 
sented upwards  of  48  millions  sterling,  of  pastoral 
products  27  millions,  forest  products  i|  millions, 
and  fish  and  game  i^ioo,ooo.  The  largest  ship- 
ment of  these  details  included  wheat,  maize,  lin- 
seed, oats,  wool,  frozen  beef  and  mutton,  hides, 
and  quebracho  wood.  Argentina  is  already  the 
wheat  exporting  country  of  the  world,  and  is  by 
far  the  world's  greatest  exporter  of  linseed.  Yet 
in  1854  "o^  more  than  375,000  acres  of  this  wonder- 
ful land  was  under  tillage.  Twenty  years  later, 
271,000  acres  were  being  cultivated  for  wheat 
alone,  and  to  day  the  wheat  area  is  represented  by 
14  million  acres.  In  1902  Argentina  produced 
2,824,000  tons  of  wheat,  of  which  it  exported 
543,000  tons.  In  the  cereal  year  1908-9  it  grew 
4,250,000  tons  (5-3  per  cent  of  the  entire  crop  of 
the  world),  of  which  it  exported  2,980,000  tons. 
Buenos  Aires  and  Rosario  are  the  great  wheat 
ports,  and  the  former  is  now  feeling  the  competi- 
tion of  Bahia  Blanca  in  the  south.  The  following 
are  the  wheat  exports  of  the  principal  wheat-raising 
countries  of  the  world  in  the  year  1908-9  : 

Tons.  Tons. 

Argentina      .   2,980,000     Canada.         .  1,640,000 

United  States  2,952,000     Balkan  States  1,058,000 

Russia  .         .   2,625,000     Australasia    .  1,032,000 

India,  754,000  tons. 


128  THE   TEN   REPUBLICS 

The  republic  has  come  to  the  fore  of  late  years 
as  a  producer  of  linseed,  the  average  annual  pro- 
duction during  the  years  1905-9  having  increased 
over  156  per  cent,  relatively  to  the  average  annual 
production  of  the  preceding  five  years  and  over 
300  per  cent,  relatively  to  that  of  the  years  1895-9. 
Its  product  of  linseed  during  1909  was  1,049,000 
tons,  equal  to  the  amount  produced  by  either 
Russia  or  North  America  and  India  together. 

Though  the  production  of  sugar  is  large,  it 
was  not  sufficient  in  1909  to  meet  the  home  de- 
mand, and  a  considerable  quantity  was  imported. 
Tucuman  is  the  sugar  and  tobacco  region,  whilst 
Mendoza  is  responsible  to-day  for  nine-tenths  of 
the  great  and  growing  grape-harvest.  The  familiar 
expression  ''wine  of  the  country"  is  here  a  very 
literal  one,  and  the  old-world  vineyards  and 
"  bodegas  "  of  Mendoza  are  a  sight  worth  seeing. 
In  1884  only  some  63,000  acres  were  under  grape 
cultivation,  and  they  produced  less  than  six  million 
gallons  of  wine  ;  in  191 1  the  production  should  cer- 
tainly amount  to  42,000,000  gallons.  While  all 
sorts  of  wine  are  manufactured,  the  widest  popu- 
larity is  for  red  and  white  clarets.  The  tariff 
renders  foreign  wines  far  too  expensive. 

Cattle  and  sheep  rearing,  and  the  production  of 
frozen  and  chilled  meat,  have  made  great  headway, 
and  the  fact  that  a  recent  contract  has  been  made 
with  the  Nelson  Line  for  ten  new  steamers,  of 
8000  tons  each,  to  be  used  exclusively  for  the 
shipping  of  chilled  meat,  is  a  sufficient  indication 


THE   ARGENTINE   REPUBLIC  129 

of  the  extent  of  this  trade.  The  trade  of  Argentina 
in  cattle  and  sheep,  hides  and  wool  is  still  capable 
of  great  expansion.  The  business  in  chilled  or 
frozen  beef  and  mutton  is  of  more  recent  growth 
than  that  in  wool  and  hides,  which  even  in  the 
seventeenth  century  was  quite  considerable.  To- 
day it  constitutes  one  of  Argentina's  greatest  com- 
mercial assets,  and  in  1910  Great  Britain  derived 
72  per  cent,  of  her  chilled  and  frozen  meat,  not 
from  her  own  overseas  dominions,  but  from  the 
fruitful  Argentina. 

Times  have  indeed  changed  since  the  days 
when  animals  were  killed  for  their  hides  only  and 
the  carcases  left  to  rot  on  the  ground.  Great 
allowance  must  be  made,  of  course,  for  the  slow 
but  sure  advance  in  the  method  of  freezing,  chill- 
ing, and  preserving  the  carcases.  By  1895  ^^e 
number  of  cattle  on  the  pampas  had  increased 
to  21,701,506  head,  an  increase  of  iij  millions 
in  thirty  years.  The  census  of  1909  shows 
a  further  increase  to  nearly  30,000,000  head. 
As  illustrating,  coincidently,  the  corresponding 
welcome  advance  of  Argentina  in  kindred  spheres 
of  usefulness  (wheat,  railways,  etc.),  the  proportion 
of  cattle  to  the  total  wealth  of  the  country  fell  from 
25  per  cent,  in  1857  to  18  per  cent,  in  1884.  Con- 
siderable impetus  was  given  to  the  business  by 
the  extensive  importation  of  the  best  blood-stock, 
and  in  1899-1903  some  3000  bulls  were  imported, 
mainly  from  England.  A  great  number  of  the 
*'estancias"  or  ranches  are  British  owned  and 
K 


I30  THE   TEN    REPUBLICS 

conducted. 1  In  1909,  275,930  tons  of  beef  and 
mutton  were  exported.  Last  year's  returns  of  the 
total  number  of  animals  in  Argentina  represented 
a  gross  value  of  ^60,468,750.  The  '^  Campo," 
as  the  vast  pampa  is  locally  called,  has  contributed 
more  than  any  other  factor  to  the  making  of  the 
Argentine  nation  of  to-day. 

In  1909  the  export  of  wool  from  the  Argentine 
ports  had  attained  the  satisfactory  figure  of 
176,682  tons.  The  fine  quality  of  this  wool  is 
maintained  by  judicious  but  constant  experiments 
in  breeding,  as  well  as  by  the  magnificent  quality 
of  the  pampas  pasturage. 

Some  estancias  have  dairies  attached  to  them, 
and  the  export  of  butter,  of  an  excellent  quality, 
has  grown  from  a  few  hundred  pounds  in  1891  to 
8000  tons  last  year.  Of  this  export,  the  United 
Kingdom  takes  90  per  cent. 

Several  huge  meat-extract  companies  have  their 
head-quarters  in  Argentina.  The  Bovril  Company 
purchased  438,000  acres  and  two  factories  at  Santa 
Elena  and  San  Javier,  and  in  these  factories  some 
100,000  cattle  are  slaughtered  annually.  The 
Lemco  and  Oxo  Company  was  the  first  to 
be  established,  about  1865.  ^'Liebig's  Extract" 
was  eventually  absorbed  by  the  Lemco  and  Oxo 
Company,  starting  in  Uruguay,  but  now  owning 
ten  estancias  in  Argentina,  nine  in  Paraguay 
and  seven  in  Uruguay.     The  whole  area  of  this 

1  *'  Of  every  twenty  estancias  in  the  South,  fifteen  belong-  to 
Englishmen." — Bernandez,   The  Argentine  Estancia. 


THE   ARGENTINE   REPUBLIC 


131 


immense  property  exceeds  that  of  Kent  and 
Surrey  together,  and  one  estancia  alone  is 
bigger  than  the  Isle  of  Wight.  From  January 
to  June  is  the  killing  season,  and  in  this  six 
months  some  250,000  beasts  are  slaughtered  by 
the  Lemco-Oxo  combine.  The  table  below  gives 
the  history  of  the  Company's  expansion  in  periods 
of  ten  years  : — 


Acres. 

Stock. 

1868 

28,494         . 

12,000  cattle. 

1878 

37,961          . 

•       19,036       ,, 

1888 

126,984 

.       36,685       „ 

1898 

254,133         . 

•       66,435       „ 

1908 

1,302,386         . 

.     224,406       ,, 

I9I0 

1,727,720         . 

•     274,500       ,, 

Turning  to  home  products  other  than  the 
pastoral -agricultural,  we  find  that  although 
manufacturers  in  Argentina  are  so  heavily  pro- 
tected progress  is,  on  the  whole,  slow.  The 
country  has  130  distilleries  and  32  breweries 
(1910),  while  rum  is  freely  manufactured  at 
Tucuman.  About  eighty  factories  produce 
;^2, 500,000  worth  of  tobacco  annually.  Three 
years  ago,  303  flour  mills  yielded  700,000  tons 
annually,  but  the  high  tariff  and  lack  of  coal  are 
handicaps  to  full  expansion.  Considerable  pro- 
duction of  textiles  also  takes  place  (at  two  cotton 
mills  and  sixty  weaving  factories),  as  well  as  of 
glass-ware,  matches,  paper,  clothing,  leather,  and 
boots  and  shoes  of  the  cheaper  kind,  etc. 


132  THE   TEN    REPUBLICS 

The  total  number  of  factories  in  the  Argentine 
Republic  in  1909  was  31,996,  with  a  capital  of 
^19,269,335,  and  an  annual  output  valued  at 
;^io8, 282,326.  The  value  of  the  raw  material 
employed  in  these  factories  during  the  year  was 
estimated  at  ;^63,oi3,238.  The  employees  num- 
bered 327,893,  and  the  motive  power  employed 
aggregated  229,692  horse-power.  Buenos  Aires 
has  10,349  factories  and  118,315  employees. 

In  1908  Argentina  had  the  satisfaction  of  super- 
seding the  United  States  as  the  premier  maize 
exporter  of  the  world.  The  value  of  this  export 
last  year  was  over  ;^i 2,000,000. 

In  the  matter  of  imports,  England  claims  the 
proportion  of  34*2  per  cent  of  the  entire  trade, 
followed  by  Germany  (whose  growing  enterprise 
in  South  American  affairs  is  noteworthy)  with 
i3'9,  and  the  United  States  with  13-2.  The 
import  trade  figures  of  the  principal  competing 
countries  in  1910  were  :  Great  Britain,  ;^i8,37i, 396  ; 
Germany,  i^7, 569,415  ;  United  States,  ;^7, 119,400  ; 
France,  i^5> 295,383  ;  Italy,  ;^4,982,649  ;  Belgium, 
^^2,550,674. 

Agricultural  Argentina  has  in  some  sense 
been  developed  and  exploited  at  the  expense  of 
mineral  Argentina,  though  in  any  case  its  mineral 
product  is  far  inferior  to  that  of  other  South 
American  countries.  Still,  gold,  silver,  and 
copper  ore  are  worked  in  considerable  quantities, 
and  many  believe  the  workings  to  be  capable  of 
considerable  development.     The  mining  region  is 


THE   ARGENTINE   REPUBLIC  133 

situated  mainly  under  the  Andes,  and  the  Mejicana 
Mine  at  Famatina  is  16,500  feet  above  sea-level. 

So  well  wooded  are  certain  areas  that  the  forests 
of  the  **GranChaco"  are  said  to  contain  sixty 
thousand  square  miles  of  timber.  The  forest- 
woods  include  the  quebracho,  the  nandubay 
(acacia),  lapacho  (bignonia),  red  and  white  cedar, 
amarillo  (mimosa),  the  palm-tree  (introduced  by 
the  Jesuits),  poplar,  willow,  walnut,  and  the  cele- 
brated j^'^/-^^  mate^  whose  leaves  make  a  stimulating 
tea.  The  valuable  quebracho  (breakaxe)  takes 
a  hundred  years  to  arrive  at  maturity.  It  is  largely 
used  in  the  making  of  railway  sleepers,  etc.,  and 
also  provides  an  export  trade  of  about  a  quarter 
of  a  million  tons  annually,  mainly  for  tanning 
purposes.  This  wood  bears  so  strong  a  re- 
semblance to  red  marble  that  it  is  a  difficult 
matter  to  distinguish  between  the  two. 

Argentina's  own  modest  mercantile  marine  is 
represented  by  about  three  hundred  steam  and 
sailing  ships,  having  a  tonnage  of  some  100,000 
gross.  But  her  score  of  magnificent  harbours, 
ranging  from  the  stately  docks  of  Buenos  Aires 
and  Rosario  to  the  more  moderate  but  not  less 
ambitious  ports  of  Rio  Gallegos  and  Puerto 
Madryn,  demand  separate  mention.  In  1908, 
7,555,574  tons  of  shipping  entered  and  7,562,055 
cleared  from  the  port  of  Buenos  Aires,  while 
1,924,808  tons  entered  and  2,029,596  cleared  from 
Rosario.  But  Santa  Fe,  La  Plata,  Parana,  Cor- 
rientes,    Goya,    Diamante,    Bella   Vista,    and   the 


134  THE   TEN    REPUBLICS 

splendid  growing  southern  port  of  Bahia  Blanca, 
where  now  enter  and  clear  nearly  a  million  tons 
of  shipping  annually,  are  also  important  ports. 

Rosario,  the  second  city  of  the  Republic,  and 
now  a  place  of  nearly  200,000  people,  is  less  than 
two  hundred  miles  from  the  capital,  which  may 
be  reached  under  five  hours  on  the  Central  Argen- 
tine Railway.  It  is  the  principal  wheat,  linseed, 
and  maize  port  of  Argentina.  Its  situation  on 
the  Parana  River  is  superb,  and  when  Rosario 
is  linked  up — as  it  will  be— by  through  railway 
inter-communication  with  Brazil,  Paraguay,  and 
Bolivia,  and  Brazilian  coal  can  be  brought  into 
the  country  in  great  quantities,  a  chief  obstacle 
to  Argentina's  complete  industrial  supremacy  will 
be  swept  away. 

The  city  of  Santa  Fe,  capital  of  the  province 
of  that  name,  does  the  greatest  export  trade  in 
quebracho  wood,  approximating  to  200,000  tons 
annually.  It,  too,  is  on  the  Parana,  whose  won- 
derful ''Falls  of  Iguazu,"  the  Niagara  of  South 
America,  are  not  far  away. 

The  ''Gran  Chaco,"  the  northern  division  of 
the  country,  is  singularly  interesting.  It  is  the 
home  of  the  native  Indian  tribes,  and,  in  sharp 
contrast  to  the  Mendozan  area,  its  climate  is 
tropical.  Its  fauna  includes  the  jaguar,  the  puma, 
wild  cat,  fox,  tapir,  many  varieties  of  deer,  and 
the  alligator.  The  north  is  marshy,  the  south 
covered  with  dense  forests.  The  capital  of  the 
Chaco  is  Resistencia. 


THE   ARGENTINE   REPUBLIC  135 

The  most  interesting  spot  in  the  country  is 
Cordoba,  founded  in  1573.  It  has  the  oldest 
University  in  South  America  except  Lima  — estab- 
lished by  the  Jesuits  in  1613.  Then  there  is 
Tucuman,  on  the  River  Sali.  It  already  has 
50,000  inhabitants,  and  as  its  growing  sugar  and 
tobacco  industries  develop  it  is  certain  to  become 
a  most  important  centre. 

Bahia  Blanca,  the  future  great  competing  wheat 
port  of  the  south,  did  not  obtain  railway  facilities  at 
all  until  1885,  but  nowadays  the  healthy  competi- 
tion of  two  big  lines — the  Great  Southern  and 
the  Bahia  Blanca  and  North- Western  worked  by 
the  Buenos  Aires  and  Pacific  Railway — is  most 
beneficial  to  the  town.  It  has  also  become  a  big 
naval  port,  docks  to  receive  the  biggest  battleships 
having  been  constructed  under  the  direction  of 
the  famous  Italian  engineer,  the  Chevalier  Luigi. 

It  is  believed  that  Patagonia  will  develop  ex- 
tensively. Its  lakes  and  harbours  are  good,  and 
its  pastures  admirable.  Sheep  farming  is  develop- 
ing, and  there  is  an  extensive  trade  in  salt  and 
fruit. 

British  trade  with  Argentina,  in  spite  of  its 
progress  of  recent  years  (the  total  amounting  in 
1909  to  fifty-one  millions  sterling,  and  showing  an 
increase  of  nearly  300  per  cent  relative  to  its 
amount  ten  years  previously),  is  still  a  subject  for 
criticism  with  regard  to  its  practical  conduct  and 
the  consequent  effect  upon  its  volume.  It  is  urged 
by  an   Argentine  correspondent  to   The  Times  in 


136  THE   TEN   REPUBLICS 

January  of  this  year— and  his  complaints  recall 
strictures  that  Consular  reports  have  made  familiar 
to  us  for  many  years  past — that  apathy  and  lack 
of  business  aptitude  on  the  part  of  British  mer- 
chants are  more  noticeable  in  their  business 
relations  with  Argentina  than  with  any  other 
country.  The  demand  for  British  goods  by  the 
Argentines,  wrote  this  correspondent,  is  so  eager 
that  even  the  inconvenience  and  vexation  that 
ensue  from  the  English  manufacturers'  indifference 
to  their  own  interests  and  disregard  of  opportuni- 
ties have  not,  as  yet,  diverted  the  demand  to  other 
countries,  though  naturally  the  facilities  and  trade 
courtesies  which  are  not  forthcoming  from  English 
firms,  and  which  do  characterize  the  dealing  of 
German  and  American  manufacturers  with  Argen- 
tine business  houses,  have  secured  for  the  latter 
a  considerable  share  of  the  trade  which  might 
otherwise  have  been  held  by  Englishmen. 

There  is,  no  doubt,  truth  in  the  statement  that 
some  branches  of  South  American  trade  are  not 
conducted  with  that  sense  of  commercial  rectitude 
that  invites  the  confidence  of  British  merchants, 
but  to  place  all  responsibility  for  the  conditions  de- 
plored by  the  Argentine  correspondent  to  The  Times 
upon  this  fact  would  but  be  to  argue  ignorance  of 
many  details  of  the  situation  and  associate  our- 
selves with  cant  phrases.  As  The  Times  justly 
said  in  a  leading  article  commenting  upon  the 
letter  referred  to,  "It  is  not  in  this  case  a  question 
of  fools  and  angels — merchants  of  other  nations 


THE   ARGENTINE   REPUBLIC  137 

are  not  all  fools  nor  are  British  merchants  all 
angels.  We  do  well  to  eschew  corrupt  practices, 
but,  even  so,  there  is  plenty  of  room  for  improve- 
ment in  our  methods  of  doing  business." 

Meanwhile  Argentina  progresses  by  leaps  and 
bounds,  a  land  of  plenty  for  all  but  the  naturally 
inept  and  incapable.  Its  people  are  frankly  and 
entirely  occupied  in  the  pursuit  or  the  enjoyment 
of  wealth,  caring  but  little  how  they  are  governed 
and  regarding  politics  with  indifference,  so  long 
as  it  rains.  Drought  they  fear  with  reason,  for  it 
strews  their  vast  pasture-lands  with  the  carcases 
of  starved  cattle,  and  of  the  visitations  of  locusts 
they  have  had  bitter  experience.  But  the  rain 
comes  at  last,  and  soon  the  wonderful  soil  puts 
forth  rich  provender  for  the  survivors  of  the  herds, 
and  restores  the  herbage  stripped  by  the  flying 
blight.  Losses  are  quickly  covered  by  new  gains, 
for  what  nature  takes  away  is  but  little  compared 
to  what  she  gives  back ;  and  before  long  the  reser- 
voirs and  the  extensive  scheme  of  irrigation  which 
the  Argentine  Government,  in  combination  with 
the  railways,  has  wisely  inaugurated,  will  greatly 
reduce  the  unavoidable  damage  to  crops.  The 
national  prosperity  rests  on  the  surest  of  founda- 
tions, since  an  inexhaustible  source  supplies  its 
constituents,  and  for  these,  the  prime  necessity  of 
mankind,  the  demand  can  never  even  waver,  so 
that  in  summing  up  Argentina's  prospects  of  future 
material  welfare  the  slightest  tinge  of  pessimism 
would  appear  to  be  inadmissible. 


CHAPTER  VI 

BOLIVIA 

In  the  days  of  Spanish  dominion  that  part  of 
South  America  now  known  as  Bolivia  was  ''the 
pride  of  Spain"  and  the  ''envy  of  the  rest  of 
Europe."  From  the  rich  silver  mountains  of 
Potosi  untold  wealth  was  carried  on  the  backs 
of  Indians  or  of  llamas  over  the  Andes  to  Arica 
and  thence  in  the  "silver  ships"  to  Panama. 
Potosi,  which  could  then  boast  of  150,000  in- 
habitants, sixty  churches,  many  costly  public 
buildings  and  a  great  mint,  has  now  a  rather 
melancholy  and  dilapidated  air.  The  mint, 
constructed  of  timber  dragged  from  Oran  in 
Argentina,  stands  to  this  day,  sprawling  over  two 
city  blocks.  Many  of  the  churches  still  survive 
in  a  less  perfect  state  of  preservation,  and  the 
twenty-two  artificial  lakes,  constructed  in  162 1 
on  the  heights  which  dominate  the  city,  give 
evidence  of  the  number  and  importance  of  the 
workings  to  which  it  was  their  purpose  to  supply 
water ;  but  of  the  almost  fabulous  wealth  and 
the  fame  which  was  Potosi's,  little  remains  but 
the  memory.  Yet  though  the  ancient  glories  of 
their  city  have  departed,  the  citizens  of  Potosi 
seem  keenly  alive  to  its  future  possibilities,  and 

138 


BOLIVIA 


139 


are  looking  forward  to  the  completion  of  the 
new  railway  which  will  connect  the  town  with 
the  main  Bolivian  railways  and  open  their  mineral 


resources  to  the  world.  Bolivia,  like  her  most 
famous  city,  perhaps,  finds  more  satisfaction 
in  the  contemplation  of  what  the  future  has  in 
store  for  her  than  in  brooding  over  the  past. 
For  nearly  a  generation  Bolivia  has  encountered 


F40  THE   TEN    REPUBLICS 

hard  luck.  Strife  with  her  neighbour  Republics 
over  questions  of  boundaries,  frequent  internal 
dissensions  interspersed  with  periods  of  corrupt 
and  incapable  administration,  these  are  but  a 
portion  of  the  chronicle  of  her  perplexities.  In 
the  ill-advised  war  with  Chile,  Bolivia  lost  her 
only  maritime  province,  and  is  now  a  land-locked 
nation  with  the  single  consolation  that  she  is 
unconcerned  in  the  naval  rivalry  that  has  suddenly 
overtaken  at  least  three  of  her  neighbours.  Chile 
has  granted  her  the  use  in  perpetuity  of  two  sea- 
ports. Great  Britain  has  resumed  diplomatic 
relations  with  La  Paz.  The  several  boundary 
questions  have  apparently  been  settled  or  are  on 
the  way  towards  settlement,  and  Bolivia  has 
emerged  with  a  loss  of  territory  which  she  could 
easily  spare  and  a  gain  of  two  million  sovereigns 
which  she  greatly  needed.  Commerce  has  re- 
ceived an  impetus,  her  markets  are  extending, 
and  foreign  capital  is  beginning  to  venture  into 
the  country.  An  honest,  capable  Government  has 
helped  to  bring  about  these  more  satisfactory  con- 
ditions. The  indemnity  received  from  Brazil  has 
been  scrupulously  put  to  the  useful  purpose  of 
building  a  system  of  railways  which,  when  com- 
pleted, will  link  together  the  important  cities. 
The  undertaking  is  in  the  hands  of  a  reputable 
British  company,  and  the  writer,  having  inspected 
all  the  completed  lines,  can  vouch  for  the  integrity 
of  the  work.  With  the  opening  of  the  railways 
now  in  course  of  construction  in  Bolivia  and  the 


BOLIVIA  141 

completion  of  the  joint  Chile-Bolivia  railway  from 
Arica  to  La  Paz,  the  principal  city  of  Bolivia  will 
be  supplied  on  all  sides  with  railways.  La  Paz 
will  not  only  have  three  direct  railway  outlets  to 
the  Pacific  coast— those  via  Antofagasta,  Arica 
and  Mollendo  respectively — but  a  line  extending 
to  a  point  on  the  river  Beni  from  which  free 
navigation  is  possible  into  the  Amazon  and  its 
innumerable  navigable  tributaries. 

Yet  another  important  line  is  that  which  will 
leave  the  main  track  of  the  Antofagasta-Bolivia 
Railway  at  Uyuni,  go  thence  to  Tupiza  and  con- 
nect with  one  of  the  greatest  and  most  remarkable 
railway  systems  in  the  world,  that  of  Argentina. 
The  Arica-La  Paz  Railway  is  to  be  inaugurated  this 
year,  on  the  6th  of  August,  Bolivia's  Independence 
Day,  in  the  presence  of  the  Presidents  of  the  two 
countries.  The  event  should  strengthen  the 
friendly  relations  of  Chile  and  Bolivia  and,  as 
did  the  interchange  of  visits  last  year  between 
the  Presidents  of  Chile  and  Argentina,  help  to 
establish  permanent  mutual  goodwill  between  the 
two  Republics. 

There  are  indications  that  the  luck  of  Bolivia  has 
changed,  and  her  prospects  seem  full  of  promise. 

In  point  of  area  Bolivia  comes  third  to  Brazil 
and  Argentina,  with  700,000  square  miles  of  the 
most  varied  territory  in  South  America.  In  the 
north-west  are  hot  lowlands,  hydrographic  basins 
whose  rivers,  navigable  for  long  distances,  fertilize 
vast  meadows  into  abundant  vegetation  ;  in  the 


142  THE   TEN   REPUBLICS 

east  are  rolling  grass  plains  and  almost  impene- 
trable forest-lands  intersected  by  broad  rivers 
which  overflow  their  low  banks  and  spread  into 
swamps.  In  the  west  a  massive  double  range  of 
the  great  Andes  encloses  a  high  plateau  520  miles 
in  length,  with  an  average  breadth  of  nearly  eighty 
miles — a  bleak  and  windy  plain,  12,000  feet  above 
sea-level — where  the  scanty  vegetation  grows  with 
difficulty  and  the  few  streams  that  descend  from 
the  surrounding  summits  either  feed  a  vast  morass 
or  flow  into  two  great  lakes.  In  the  southern 
portion  of  this  plateau  are  flat,  arid  deserts 
covered  with  deposits  of  salt.  The  territory  in 
the  south-west  of  Bolivia  consists  of  volcanic 
ranges  to  the  east  and  sandy  plains  to  the  west, 
where  a  few  feeble  streams  form  at  long  intervals 
welcome  oases. 

Bolivia  is  bounded  on  the  north  and  north-east 
by  Brazil,  west  by  Peru  and  Chile,  south  by 
Argentina,  and  south-east  by  Paraguay.  The 
territory  is  divided  into  the  departa7nentos  of  La 
Paz  and  El  Beni  in  the  north  ;  Oruro  in  the  west, 
Cochabamba  in  the  centre  and  Santa  Cruz  in  the 
east ;  Potosi,  south  of  Oruro,  Chuquisaca,  south 
of  Santa  Cruz,  and  Tarija  in  the  south-east  corner. 
In  the  north-west  is  a  Territorio  de  Colonias, 
largely  unexplored  and  reserved  by  the  Govern- 
ment for  colonizing  purposes,  while  part  of  the 
department  of  Tarija  is  also  unsurveyed,  and  is 
the  haunt  of  many  wild  tribes. 

The  natural  resources  of  this  territory  are,   in 


BOLIVIA  143 

the  first  place,  minerals,  and  the  wealth  of  Bolivia 
in  this  direction  is  undeniable.  Of  all  countries 
of  the  world  she  exports  most  bismuth,  is  the 
second  largest  producer  of  tin,  and  holds  third 
place  as  a  silver  producer.  She  possesses  in 
greater  or  less  abundance  almost  all  the  known 
metals  of  the  world.  The  soil  has  yielded 
immense  quantities  of  gold,  first  for  the  Incas, 
then  for  their  Spanish  conquerors,  and  later  for 
Portuguese  and  Brazilian  exploiters,  and  there  is 
no  doubt  that  much  still  remains.  Statistics  do 
not  give  a  correct  idea  of  the  amount  of  gold 
mined  annually,  for  most  of  it  is  exported  clan- 
destinely, but  although  for  lack  of  labour,  capital, 
and  transport  facilities  none  of  the  mines  can  be 
fully  worked,  and  many  of  the  gold-bearing  dis- 
tricts are  entirely  neglected,  there  are  many  rich 
placers  in  the  departments  of  La  Paz,  Cocha- 
bamba,  and  Santa  Cruz  from  which  a  far  greater 
amount  of  the  precious  metal  is  extracted  than  is 
shown  by  official  figures.  Gold  is  also  found  in 
districts  of  the  departments  of  Potosi,  Tarija,  and 
Chuquisaca,  and  to  a  limited  extent  is  worked 
there,  but  the  richest  region  of  all,  around  the 
sources  of  the  Purus,  Madre  de  Dios,  and  Acre 
rivers,  is  completely  abandoned. 

Tin  is  found  in  extraordinary  abundance  in  the 
north  (La  Paz),  in  the  centre  (Oruro),  in  the 
south  (Chorolque),  and  in  the  east  of  the  Andean 
zone  of  Bolivia  (Potosi).  Of  these  districts  Potosi 
produces  about  a  half  of  the  total,  which  amounted 


144  THE   TEN   REPUBLICS 

in  1910  to  38,548  tons,  representing  a  value  of 
^^2,960,520.  Silver  is  found  principally  in  the 
west  of  the  Republic,  in  the  auriferous  zone  of 
the  plateau  which  a  geologist  has  described  as 
''a  table  of  silver  with  legs  of  gold."  From  the 
famous  hill  of  Potosi,  which  is  reputed  to  have 
yielded  during  the  320  years  that  followed  its 
discovery  metal  to  the  value  of  ^^270,000,000, 
some  silver  is  still  mined  and  ancient  tailings 
are  worked,  but  the  present  low  price  of  the 
metal  has  hit  the  industry  hard,  and  even  Pula- 
cayo,  the  richest  of  all  the  Bolivian  mines, 
second  only  to  Broken  Hill,  with  the  costliest 
of  machinery  can  barely  be  worked  at  a  profit. 
Thousands  of  mines  are  abandoned,  owing  either 
to  the  invasion  of  water  in  the  shafts  or,  more 
frequently,  to  lack  of  capital,  labour,  and  trans- 
port facilities.  Nevertheless,  after  tin  and  rubber, 
silver  is  the  most  important  product,  and  was 
exported  in  1910  to  the  value  of  ;^42 1,163. 

Copper  is  found  in  the  eastern  chain  of  the 
Bolivian  Andes  and  its  ramifications,  and  even 
far  beyond  these,  for  there  are  rich  veins  in 
the  Chuquisaca  and  Tarija  departamentos  in  the 
south-west.  The  industry  has  suffered  from  high 
freights  and  relatively  low  prices,  but,  as  with 
silver -mining  and  every  other  enterprise  in 
Bolivia,  there  is  little  doubt  that  it  will  improve 
upon  the  completion  of  railways  now  in  con- 
struction or  projected.  In  1910  the  total  export 
of  the  metal  was  3190  tons,   worth  ^142,956,   a 


BOLIVIA  145 

distinct  improvement  upon  the  1909  figures.  Of 
bismuth,  a  comparatively  little-used  metal,  there 
were  exported  in  1910  some  214  tons,  value 
;^i 53,873.  It  exists  in  conjunction  with  tin  and 
more  rarely  with  silver,  and  a  far  greater  quan- 
tity could  be  exported  if  the  European  market, 
which  is  said  to  be  a  monopoly  of  the  King  of 
Saxony,  could  accommodate  it.  In  1910  exports 
of  zinc,  which  comes  principally  from  Carangas, 
in  the  department  of  Oruro,  showed  a  remarkable 
increase,  11,797  tons  of  ore,  worth  ;^34,8oo,  being 
produced  as  against  a  matter  of  183  tons  in  1909. 

Wolfram,  antimony,  magnetic  iron  and  lead 
ore  are  also  exported  on  a  small  scale,  and 
amongst  the  infinity  of  minerals  which  the 
country  undoubtedly  contains  are  cobalt, 
platinum,  arsenic,  manganese  and  others. 
Amethysts,  turquoises,  emeralds,  topazes  and 
opals  have  been  found,  mostly  in  Lipez,  in  the 
south-west,  and  diamonds  are  rumoured  to  exist 
in  the  same  district.  Non-metallic  minerals 
include  borax,  petroleum,  coal  and  nitrate, 
though  Bolivia  lost  the  best  part  of  her  nitrate 
lands  to  Chile. 

Bolivia's  rubber  industry  is  next  in  importance 
to  the  tin-mining,  and  in  1909  the  exports  of  this 
product  amounted  to  3052  tons.  Rubber  forests 
cover  large  tracts  of  territory  in  the  Beni  and 
Santa  Cruz  departamentos  and  the  Territorio  de 
Colonias,  and  to  a  lesser  extent  in  the  northern 
portion  of  the   department  of  Cocliabamba   and 

L 


146  THE   TEN   REPUBLICS 

La  Paz.  The  inaccessibility  of  some  of  the 
regions  has  left  a  great  source  of  wealth  un- 
touched, but  here  again  the  coming  of  the 
railways  will  gradually  open  even  the  remotest 
districts  and  facilitate  export. 

Agriculture  in  Bolivia  is  in  a  backward  con- 
dition, and  is  mainly  in  the  hands  of  small  Indian 
farmers  who  raise  little  more  out  of  a  soil  un- 
matched in  South  America  for  fertility  than 
suffices  for  their  own  needs.  Wheat  was  at  one 
time  largely  grown,  especially  in  Cochabamba, 
which  was  the  '*  Granary  of  Alto  Peru,"  but  very 
little  is  cultivated  now.  Coca  is  grown  to  a  great 
extent,  and  though  consumed  enormously  in 
Bolivia  the  surplus  exported  last  year  repre- 
sented a  value  of  ;^33,6oo.  A  little  quinine  and 
less  coffee  are  the  only  other  vegetable  exports 
worthy  of  mention.  Horned  cattle  roam  wild  in 
great  herds  over  the  plains  of  the  Mojos  and 
other  regions,  but  no  attempt  has  been  made  to 
improve  the  breed.  A  small  quantity  of  hides 
and  horns  are  exported,  and  the  meat  obtained 
is  sufficient  to  supply  most  of  the  republic,  but 
otherwise  cattle-rearing  is  a  neglected  industry. 
It  should  be  remembered  that  half  of  Bolivia's 
population  is  pure  Indian,  and  from  time  im- 
memorial has  domesticated  or  endeavoured  to 
domesticate  the  alpaca,  the  vicuna,  and,  above 
all,  the  llama,  which  is  regarded  by  the  natives 
with  a  kind  of  veneration.  The  llama  is  a  smaller 
member  of  the  camel   family,  and  as  a  beast  of 


BOLIVIA  147 

burden  will  carry  a  hundredweight  for  ten  or 
twelve  miles  daily  over  the  roughest  routes, 
feeding  on  almost  anything  and,  when  necessary, 
going  without  water  for  several  days.  The  flesh 
of  the  llama  is  eaten  by  the  Indians,  its  wool 
is  made  into  divers  fabrics,  its  hide  into  leathern 
trunks,  boots,  and  saddles,  and  its  bones  into 
various  implements  used  in  the  native  looms. 
Some  Indians  possess  herds  of  thousands  of  these 
useful  beasts.  Sheep  abound  in  great  flocks  in 
the  cold  and  temperate  regions,  and  a  small 
amount  of  wool  is  exported. 

Such  industries  as  exist  are  of  a  primitive  kind, 
but  the  poverty  of  the  majority  of  the  population, 
which  restricts  the  import  trade,  makes  these 
sufficient  to  a  certain  extent  for  the  home  market. 
Spinning  and  weaving  are  carried  on  as  house- 
hold occupations.  Tanning  and  saddlery  are 
native  industries. 

The  main  railway  of  Bolivia  is,  of  course,  the 
Antofagasta  and  Bolivia  Railway.  In  its  run  of 
'730  miles  from  the  Chilian  port  to  La  Paz,  the 
seat  of  Government  and  chief  commercial  centre 
of  Bolivia,  this  line  travels  through  some  of  the 
grandest  Andean  scenery  in  South  America  and 
in  Bolivia  taps  a  very  rich  mineral  district. 
Branches  of  this  line  are  under  construction,  or 
in  contemplation,  at  Uyuni,  Rio  Mulato  and 
Oruro,  the  most  important  of  those  already 
started  being  perhaps  the  Rio  Mulato-Potosi  line, 
which  before  the  end  of  191 1  will  open  to  modern 


148  THE   TEN    REPUBLICS 

travel  the  most  famous  mining  city  in  South 
America. 

The  line  from  the  other  great  ChiHan  port  of 
Arica  to  La  Paz  is  being  very  rapidly  pushed 
forward.  From  La  Paz  it  will  continue  almost 
due  south  to  Corocoro,  the  centre  of  a  great 
copper  district.  The  importance  of  this  line  lies 
in  the  fact  that  it  will  bring  La  Paz  within  twelve 
hours,  on  the  downward  journey,  of  the  coast, 
and  fifteen  hours  on  the  upward  journey. 

Other  important  railway  projects  in  Bolivia  are 
the  proposed  continuation  of  the  Mollendo-La 
Paz  Railway  along  the  shores  of  Lake  Titicaca, 
which  will  link  up  Guaqui  at  the  south-east  end 
of  the  lake  with  Puno,  in  Peru,  on  the  north- 
west, and  the  construction  of  a  line  which,  though 
not  completed,  is  already  carrying  passengers 
and  freight  for  some  distance,  between  the 
Bolivian  town  of  Villa  Bella  on  the  north-east 
frontier  and  the  Brazilian  town  of  Santo  Antonio. 
Between  these  two  towns  is  a  long  stretch  of 
rapids,  the  navigation  of  which  has  caused  much 
loss  of  life  and  cargo,  and  the  avoidance  of  water- 
transit  when  the  railway  is  completed  will  greatly 
assist  the  development  of  the  rich  rubber  districts 
of  the  Beni. 

A  feature  of  Bolivia's  railway  programme  is 
the  important  part  taken  by  United  States  capi- 
talists in  the  financial  arrangements.  South 
American  railway  construction  having  hitherto 
been  one  of  the  close  preserves  of  Great  Britain. 


BOLIVIA  149 

It  was  perhaps  inevitable  that  with  the  abolition 
of  slavery  the  labour  problem  should  have  con- 
fronted the  Republic.  The  Spaniards  had  solved 
it  by  the  system  of  encomiendas^  which  meant  the 
apportionment,  with  lands,  of  Indians  who  were 
forced  to  work  them  ;  but  the  free  and  indepen- 
dent native  of  to-day  generally  prefers  to  till  his 
own  plot  of  ground,  or  to  grow  coca,  or,  in  small 
communities,  to  work  his  own  little  mine.  Labour 
is  very  unevenly  distributed  ;  the  Indians  who 
inhabit  La  Paz  and  its  environs  are  far  too 
numerous  for  the  demand  in  that  district,  and 
their  unskilled  labour  (they  are  chiefly  carriers 
and  porters)  does  not  command  a  better  wage 
than  sixpence  a  day,  while  other  districts  languish 
for  lack  of  their  assistance.  Though  sporadic  in 
their  efforts  they  are  good  workers,  having  been 
employed  in  most  of  the  railway  undertakings, 
and  make  the  best  miners  in  South  America ;  but 
there  are  not  enough  of  them,  and  for  the  solution 
of  the  labour  problem  it  would  seem  that  Bolivia 
must  look  to  the  spread  of  education,  the  advance 
of  her  railroads,  and  the  influx  of  foreign  immi- 
gration. 

The  population  (over  2,000,000),  is  very  sparse  ; 
about  30  per  cent  are  **  whites,"  the  remainder 
consisting  mostly  of  half-breeds  and  Indians.  La 
Paz,  the  largest  centre,  contains  80,000  inhabi- 
tants ;  there  are  only  five  other  towns  whose 
population  is  above  10,000. 

Elementary  education    in    Bolivia  is  free  and, 


150  THE   TEN    REPUBLICS 

nominally  at  least,  compulsory.  It  is  in  charge 
of  the  municipalities,  who  are,  however,  re- 
sponsible to  a  Minister  of  Public  Instruction,  and 
it  is  provided  in  Fiscal  schools  at  a  total  cost  of 
about  ^50,000  a  year.  Secondary  education  is 
represented  by  a  course  of  seven  years'  instruc- 
tion in  excellent  State  schools,  after  which  the 
pupil  who  has  obtained  the  degree  of  hachiller 
passes  into  the  institutions  for  higher  or  profes- 
sional education.  There  are  seven  universities. 
The  teaching  staffs  are  usually  very  competent ; 
the  material  upon  which  they  have  to  work  is 
encouraging,  and  often  extremely  intelligent,  and 
the  Government  is  devoting  more  and  more  money 
and  attention  to  the  subject ;  in  short,  the  educa- 
tional facilities  throughout  the  country  tend  yearly 
to  the  improvement  of  the  people  in  general  and 
of  the  Indian  population  in  particular.  There 
is  a  national  School  of  Commerce  in  La  Paz,  and 
several  Schools  of  Agriculture,  and  a  fine  School 
of  Mines  in  Oruro. 

Of  the  cities  of  Bolivia  the  most  interesting  is 
La  Paz,  which  through  centuries  of  isolation  has 
survived  to  see  itself  connected  by  railways  to  all 
the  important  cities  of  the  republic  and  to  the 
outside  world.  It  is  a  healthy  city,  and  lies, 
surrounded  by  the  green  gardens  of  its  suburbs, 
in  a  deep  valley  dominated  by  the  majestic  snow- 
clad  lUimani  and  a  high  plateau  named  El  Alto  ; 
and  the  panorama  of  red  roofs,  white  houses  of 
old  Spanish  architecture,  hilly  streets,  and  shady 


BOLIVIA  151 

avenues  which  is  unfolded  as  the  descent  is  made 
into  the  city  is  one  not  soon  forgotten. 

In  La  Paz  there  is  an  excellent  National 
Museum  under  the  able  direction  of  Seiior  M.  V. 
Ballivian,  who  is  the  Chief  of  the  National  Bureau 
of  Immigration,  Statistical  and  Geographical 
Propaganda. 

The  commerce  of  La  Paz  consists  of  the  im- 
portation from  beyond-seas  of  general  merchan- 
dise, and  of  the  exportation  of  tin,  copper,  a  little 
gold,  coca,  rubber,  tobacco,  and  other  products. 
It  would  appear  from  statistics  that  trade  in  La 
Paz  is  booming,  and  though  for  various  sufficient 
reasons  Bolivian  statistics  are  not  too  trustworthy, 
there  is  no  doubt  that  in  1910  the  city's  imports 
reached  a  very  considerable  figure. 

Sucre,  the  nominal  capital,  is  a  city  of  wide, 
straight  streets,  cut  through  by  four  ravines 
spanned  by  many  bridges.  Oruro  stands  at  the 
foot  of  a  low  mountain  range,  a  bleak  and  windy 
city  rescued  from  decay  by  the  railway  from 
Antofagasta,  and  now  an  ugly  hive  of  industry. 
Cochabamba  is  built  on  level  marshy  ground 
within  sight  of  snow-covered  mountains,  which 
temper  the  heat  to  its  fertile  fields,  an  unprogres- 
sive  city  as  yet,  content  to  be  a  literary  and  social 
centre.  Trinidad's  neglected  streets  fade  more 
rapidly  every  year  into  the  surrounding  pasture- 
lands,  and  the  town  is  being  abandoned  by  its 
inhabitants  in  favour  of  the  Beni  district  and  its 
rubber. 


152  THE   TEN   REPUBLICS 

The  great  Lake  Titicaca,  the  highest  consider- 
able body  of  water  in  the  world  and  the  greatest 
lake  in  South  America,  attracts  many  tourists  to 
the  north-west  of  Bolivia.  It  is  the  traditional 
birthplace  of  the  first  Inca,  and  on  two  of  its  many 
islands  are  the  prehistoric  Temples  of  the  Sun  and 
Moon,  the  Palace  of  the  Priestesses  of  the  Sun 
and  other  ancient  structures.  The  lake  is  navi- 
gated by  craft  of  all  descriptions,  from  large 
steamers  to  the  native  balsas,  canoes  built  entirely 
of  rushes,  with  sails  of  the  same  material.  The 
scenery  of  the  lake  is  magnificent,  and  on  a 
moonlight  night  its  strange  beauty,  with  Illimani 
dominating  the  background,  beggars  descrip- 
tion. 

Turning  again  to  commercial  matters,  statistics 
show  that  in  respect  of  exports  to  Bolivia,  America 
was  first  in  1909  with  a  total  value  of  ^869,930, 
Great  Britain  second  with  ;{J'63 1,548,  and  Germany 
third  with  ;^425.,  170.  Comparing  these  figures 
with  those  for  1908,  it  would  appear  that  Ger- 
many's trade  with  the  country  decreased  in  1909 
by  nearly  50  per  cent,  America's  increased  by 
i^2 16,758,  and  Great  Britain's  by  ^208,942.  While 
it  is  difficult  to  account  for  Germany's  extra- 
ordinary loss  of  trade,  the  outstanding  fact  is  that 
Great  Britain  is  not  doing  as  well  as  America, 
and  this  is  the  more  to  be  regretted  in  that  she  is 
the  principal  consumer  of  Bolivia's  exports  and  that 
in  Bolivia  English  people  and  English  goods  are 
distinctly   popular.      President   Villazon,    too,    is 


BOLIVIA  153 

very  friendly  to  English  interests,  and  has  on 
more  than  one  occasion  expressed  his  desire  for 
broader  commercial  relations  with  Great  Britain. 
On  the  other  hand,  if  statistics  may  be  relied 
upon,  America's  predominance  is  explained  by 
the  fact  that  although  American  imports  in  1909 
were  more  than  double  in  value  those  of  Germany 
and  greatly  exceeded  the  value  of  the  English  im- 
ports, they  paid  less  than  half  of  the  duty  collected 
upon  either  of  the  latter,  which  were  about  equal 
in  this  respect. 

The  following  table  shows  the  principal  exports 
of  Bolivia  for  the  two  last  years  : — 

1909.  1910. 

Exports.  Tons.  Value.  Tons.  Value. 

Tin  (barrilla)  .   35,566  2,532,328  38,548  2,960,520 

Copper    .          .     3,097  131,290  3,191  142,956 

Bismuth.         .         236  116,086  213  i53j873 

Silver       .         .         155  457,75°  H3  421,155 

Rubber    .         .     3,052  i,755j77i  3,007  2,146,020 

Coca        .         .         129  18,626  196  33,608 

Of  the  total  exports  in  1910  England  was  princi- 
pal consumer,  receiving  products  to  the  value  of 
;^3) 703)679.  Germany  was  next  with  ;^i 23,393, 
while  America's  custom  amounted  to  only  ^12,807 
worth. 

Bolivia's  actual  monetary  unit  is  the  silver 
boliviano,  no  gold  having  been  coined  since 
1842.  Its  value  is  approximately  191  pence,  or 
i2\    bolivianos    to    the    pound    sterling,    which, 


154  THE   TEN   REPUBLICS 

together  with  the  Australian  pound,  is  legal  tender 
at  this  rate.  Other  coins  are  the  half  boliviano 
or  50  centavoSy  the  peseta  or  20  centavos^  the  real 
or  5  centavos,  of  proportional  value.  Banks  of 
emission  issue  notes  of  i,  5,  10,  20,  50,  and  100 
bolivianos  (written  Bs.) 

There  is  no  recognized  external  debt  ;  the  in- 
ternal debt,  represented  by  debts  contracted  during 
the  War  of  Independence,  indemnities  and  loans 
arising  from  subsequent  civil  and  other  wars,  and 
accumulated  dues  on  account  of  contracts  and 
loans  made  by  the  Republic  during  a  former 
President's  administration,  amounts  with  Treasury 
bonds  to  about  ^1,200,000,  and  her  revenue,  which 
is  derived  mainly  from  customs  duties,  liquor  and 
other  taxes,  consular  invoice  fees,  mining  patents, 
etc.,  shows  a  fair  increase  yearly,  amounting  in 
1908  to  ^1,274,030. 

The  President  of  Bolivia,  Dr.  Eliodoro  Villazon, 
is  a  man  who  combines  clearness  of  view  with 
strength  of  purpose,  and  whose  statecraft  follows 
the  lines  of  simple,  straightforward  and  sincere 
patriotism.  He  has  no  overwhelming  difficulties 
to  contend  with,  for  Bolivia's  relations  with  her 
neighbours  and  with  Europe  have  been  sealed  by 
treaties  ratified  after  the  conclusion  of  the  war 
with  Chile  in  1883,  which  accorded  her  better 
terms  than  the  circumstances  of  that  war  would 
have  led  her  to  hope  for,  and  again  in  1903-4 
as  regards  the  boundary  disputes  with  Brazil, 
Chile  and  Peru.     Commerce  is  developing  rapidly, 


BOLIVIA  155 

and  the  dormant  possibilities  of  the  country  are 
becoming  more  widely  known.  The  influx  of 
foreign  capital  and  labour  is  not  yet  nearly  suffi- 
cient for  her  needs,  but  arrangements  are  being 
made  to  show  security  for  the  one  and  to  attract 
the  other  by  generous  provisions  for  colonists. 


CHAPTER   VII 

BRAZIL 

The  steady  progress  of  the  United  States  of 
Brazil  has  been  in  the  arts  of  peace,  if  not  in- 
variably along  the  lines  of  least  resistance.  The 
Brazilian  people  may  be  proud  of  three  great  con- 
quests— the  abolition  of  slavery,  the  overthrow  of 
a  venal  and  effete  monarchy,  and  the  extermina- 
tion, from  most  of  their  cities,  of  the  deadly 
mosquito. 

Brazil  was  twice  ''discovered"  in  the  same 
year,  for  Pinzon,  early  in  1499,  explored  the  mouth 
of  the  Amazon.  The  Spaniard,  however,  left  the 
claiming  of  the  country  to  the  Portuguese  navi- 
gator Cabral,  who  on  April  25th  cast  anchor 
in  Porto  Seguro,  in  the  south  of  what  is  now  the 
State  of  Bahia.  Taking  possession  in  the  name  of 
the  Crown  of  Portugal  he  named  it  the  ''Land  of 
the  True  Cross,"  but  when  its  first-fruits  reached 
Europe  and  were  found  to  consist  largely  of  the 
dye-wood  known  as  "brazil"  the  country  was  by 
common  consent  re-named. 

The  first  attempt  to  colonize  the  new  land  was 
made  in  1531,  when  three  hundred  colonists  were 
landed  at  Pernambuco,  and  were  followed,  later  on, 

156 


158  THE   TEN    REPUBLICS 

by  negro  slaves  imported  from  Africa.  Brazil  was 
divided  into  fifteen  captaincies,  each  with  a  fifty- 
league  stretch  of  coast,  and  each  ruled  by  a  noble 
friend  of  the  Portuguese  King.  For  a  long  time  the 
record  of  the  captaincies  was  one  of  struggle  with 
the  Indians  and  with  the  Dutch,  Spanish,  British, 
and  French  invaders.  Between  1624  and  1644  the 
Dutch  gained  a  firm  foothold  in  the  country, 
occupying  Pernambuco,  Ceara  and  Maranhao, 
in  the  north,  but  by  1654  they  were  expelled. 
Meanwhile  the  southern  interior  was  being  ex- 
plored and  developed  as  far  as  Rio  Grande  do  Sul 
and  the  river  Paraguay,  and  subsequently  the 
districts  now  occupied  by  the  States  of  Sao  Paulo 
and  Bahia  were  ransacked  for  gold  and  diamonds. 
Difficulties  with  the  French,  however,  continued 
up  to  1713,  when,  by  a  treaty  with  Portugal,  the 
course  of  the  river  Oyapock,  the  present  boundary 
of  French  Guiana,  was  established  as  the  dividing 
line  between  the  two  nations'  possessions  ;  and  it 
was  not  until  1777,  after  much  fighting  with  varying 
success,  that  the  Portuguese  and  Spaniards  could 
agree  as  to  the  division  of  the  continent. 

Then  disaffection  with  the  mother-country 
began,  caused,  it  would  seem,  by  the  machina- 
tions of  the  Church  and  the  burning,  in  Lisbon, 
of  certain  liberal-minded  Brazilians.  In  1762 
General  Gomes  d'Andrade  was  appointed  Viceroy, 
and  it  was  under  his  administration  that  the 
cultivation  of  coffee  was  begun.  In  1789  occurred 
the  unsuccessful  revolution  headed  by  Tiradentes, 


BRAZIL  159 

who  was  barbarously  executed  at  Rio,  by  then 
the  capital  of  the  country.  But  through  all 
the  civil  and  external  strife  Brazil  was  being 
developed,  and  in  1800  her  population  was  over 
3,000,000,  and  her  exports  amounted  to  ;^2, 500,000. 
In  1807  I^ii^g  John  of  Portugal,  fleeing  from  the 
armies  of  Napoleon,  was  escorted  by  a  British 
fleet  to  his  South  American  possessions,  and 
received  there  with  acclamation.  Upon  his  re- 
turn to  Portugal  in  182 1  (leaving  his  son  Dom 
Pedro  as  Regent)  the  mother-country's  treatment 
of  Brazil  became  so  harsh  and  oppressive  that  in 
1822  Dom  Pedro  proclaimed  her  independence, 
which,  after  three  years  of  resistance,  was  recog- 
nized by  Portugal. 

The  first  Brazilian  Parliament  was  held  in  1826. 
From  the  beginning  Dom  Pedro  had  to  contend 
with  Republican  plots  and  conspiracies,  and  in 
1 83 1  he  left  the  empire  to  his  five-year-old  son, 
Pedro,  and  a  Regent.  Disorders  continued,  and 
were  suppressed,  but  in  1865  began  the  serious 
war  with  Paraguay,  which  lasted  seven  years  and 
cost  Brazil  ^^50,000,000,  an  expenditure  which 
indicates  the  material  progress  she  had  made, 
since  it  did  not  quite  ruin  her.  In  1871  the 
Imperial  Congress,  modelled  on  English  lines, 
declared  slave-born  children  to  be  free,  though 
slavery  was  actually  abolished  only  in  1888.  It 
was  a  moral  victory,  which  meant  ruin  to  slave 
owners,  who,  when  compensation  was  refused 
them,  turned  against  the  Royal  Family,  and  by 


i6o  THE   TEN   REPUBLICS 

strengthening  the  Republican  party  effected  the 
downfall  of  the  monarchy  and  the  establishment 
of  the  Republic  on  November  15th,  1889. 

The  history  of  the  Republic  begins  with  civil 
contention  and  a  great  financial  and  economical 
crisis.  Order  was  gradually  restored  and  the 
credit  of  the  country  re-established,  largely  by 
the  wise  administration  of  President  Prudente 
de  Moraes,  who  assumed  office  in  1898.  His 
successors  have  been  men  of  patriotism  and 
ability,  and  the  present  holder  of  the  Presidency, 
Marshal  Hermes  da  Fonseca,  combines  these 
qualities  in  a  fashion  which,  if  he  can  maintain 
harmony  amongst  the  members  of  his  own  party, 
augurs  well  for  Brazil's  immediate  future. 

Brazil  lies  in  two  zones,  the  Equator  passing 
through  its  two  Northern  States  and  the  Tropic 
of  Capricorn  crossing  its  Southern  territory.  It 
is  the  largest  of  the  Latin-American  republics, 
having  an  area,  exclusive  of  its  small  islands 
in  the  Pacific,  of  3,290,564  square  miles.  It 
borders  on  all  the  countries  of  South  America 
with  the  exception  of  Chile  and  Ecuador,  extend- 
ing northwards  to  the  Guianas  and  Venezuela, 
on  the  north-west,  west  and  south-west  to 
Colombia,  Perii,  Bolivia,  Paraguay,  and  Argen- 
tina, and  southwards  to  Uruguay.  On  the  north- 
east, east  and  south-east  the  Pacific  Ocean  washes 
its  comparatively  little-indented  coasts  for  a  dis- 
tance of  4036  miles. 

Physiographically  it  may   be  described  as  one 


BRAZIL  i6i 

vast  upland,  with  valleys  and  plains  covered 
thickly  with  forest  and  other  vegetation  and 
watered  by  numerous  great  rivers.  The  principal 
mountains,  which  nowhere  attain  a  great  eleva- 
tion, lie  to  the  east,  near  the  coast,  and  in  the 
centre,  where  they  form  two  long  chains.  The 
most  important  of  the  rivers  is,  of  course,  the 
Amazon,  which  flows  for  2160  miles  through 
north  Brazil,  and  with  its  many  great  navigable 
tributaries  (of  which  the  Tapajoz,  Tocantins  and 
Maranhao  have  their  rise  in  the  central  region  far 
south)  forms  the  largest  hydrographic  basin  in  the 
world.  Many  streams  of  lesser  volume  flow  into 
the  Pacific,  and  in  the  central  and  south  regions 
the  chief  rivers  are  the  S.  Francisco,  Plate,  Uru- 
guay, Iguassu,  and  Parana.  The  principal  lakes  are 
the  channel-connected  Lagoa-mirim  and  Laguna 
dos  Patos  in  the  extreme  south,  but  it  may  be 
mentioned  that  the  Island  of  Marajo,  in  the  mouth 
of  the  Amazon,  has  two  large  lakes  of  its  own. 

Brazilian  territory  is  divided  into  twenty-one 
States  and  the  Acre  Territory,  and  in  approximate 
geographical  order  (west  to  east  and  north  to 
south)  these  are  as  follows :  Amazonas,  Para, 
Maranhao,  Ceara,  Rio  Grande  do  Norte,  Para- 
hyba,  Pernambuco,  and  Alagoas  ;  Acre  Territory, 
Matto  Grosso,  Goyaz,  Piauhy,  Sergipe  and 
Bahia ;  south  of  Bahia  are  Minas  Geraes,  Espi- 
rito  Santo,  Sao  Paulo,  Rio  de  Janeiro,  Parana, 
Santa  Catharina  and  Rio  Grande  do  Sul. 

Brazil  is  a  Federated  Republic,  and  the  States 
u 


1 62  THE   TEN   REPUBLICS 

are  autonomous  as  to  their  interior  administration, 
raising  their  own  loans  and  fixing  their  own 
export  duties.  Excepting  the  Federal  district 
(Rio  de  Janeiro  State),  which  is  governed  by  a 
Prefect,  they  are  administered  by  Governors  ap- 
pointed by  the  President.  The  Federal  Govern- 
ment is  vested  in  the  legislative,  executive  and 
judicial  branches.  There  are  two  Houses — the 
Senate  and  the  Chamber  of  Deputies — the  former 
composed  of  sixty-three  members,  three  for  each 
State,  and  the  latter  of  212  members,  one  for  every 
70,000  inhabitants.  Senators  are  elected  by 
popular  vote  for  a  term  of  nine  years,  and 
Deputies  for  a  term  of  three  years.  At  the  head 
of  the  Executive  is  the  President,  who  is  assisted 
by  a  Cabinet  composed  of  Secretaries,  for,  respec- 
tively— Finance,  War,  Marine,  Foreign  Affairs, 
Justice,  Interior  and  Public  Instruction,  Agricul- 
ture, and  Communications  and  Public  Works. 
The  President  receives  a  salary  of  ^8000,  and 
is  elected  by  direct  vote  for  a  term  of  four  years, 
upon  the  conclusion  of  which  he  is  ineligible  for 
a  similar  period.  The  franchise  extends  to  all 
male  citizens  over  twenty-one  years  of  age. 

The  judiciary  is  composed  of  a  Supreme  Court 
of  fifteen  Justices,  appointed  for  life  by  the  Presi- 
dent with  the  approval  of  the  Senate.  There  are 
also  twenty-one  Federal  Judges,  one  for  each  State. 

The  population  of  Brazil  is  estimated  at 
20,515,000,  and  though  no  census  details  are 
published,   it  may  be  calculated  that  at  least  half 


BRAZIL  163 

is  composed  of  Indians  and  negroes.  The  ten- 
dency is  for  the  *'  whites"  to  increase  and  to  pre- 
dominate over  their  humbler  brothers  the  apathetic 
Indian  and  the  careless  negro,  who,  it  must  be 
said,  provide  but  poor  material  for  education. 

Every  able-bodied  male  between  the  ages  of 
twenty-one  and  forty-four  is  liable  for  military 
service.  In  view  of  the  severe  wars  in  which 
Brazil  has  participated  in  the  past,  it  is  not  sur- 
prising to  learn  that  the  war  strength  of  the  army 
is  anything  up  to  300,000  ;  the  peace  footing  does 
not  perhaps  go  beyond  30,000  (of  whom  2626  are 
commissioned  officers),  but  this  figure  varies 
according  to  the  Budget  vote,  which,  as  will  be 
seen,  is  increased  for  191 1.  A  reorganization 
of  the  army  received  the  approval  of  the  President 
in  January,  1908,  and  under  this  scheme  conscrip- 
tion practically  came  into  operation.  Every 
citizen  is  liable  to  serve  :  (a)  two  years  in  the  active 
army  and  seven  in  the  reserve  (forces  of  the  first 
line) ;  {b)  three  years  in  the  army  of  the  second 
line  and  four  in  its  reserve  ;  and  (c)  three  years  in 
the  National  Guard  and  four  in  its  reserve  (forces 
of  the  third  line).  The  central  garrison  head- 
quarters are  Rio  de  Janeiro,  Parana,  Santa 
Catharina,  Rio  Grande  do  Sul,  and  Matto  Grosso. 
It  is  estimated  that  under  the  new  scheme  100,000 
troops  could  be  mobilized  immediately.  It  is  now 
proposed  to  introduce  foreign  military  officers  as 
instructors  in  the  practical  schools,  which  include 
the   Staff   College    in    the    capital,    the    Military 


i64  THE   TEN   REPUBLICS 

College  at  Porto  Alegre  (Rio  Grande  do  Sul),  and 
the  Artillery  and  Engineering  School  at  Realengo, 
near  Rio.  The  President  of  the  Republic  is 
Commander-in-Chief  in  time  of  war,  and  the 
Minister  of  War  has  control  over  the  War  Office. 

An  accelerated  naval  programme  provided  for  a 
substantial  increase  in  the  fleet  and  armament, 
which  took  effect  in  August,  1910.  This  would 
give  a  total  effective  of  six  battleships  (three  of 
them  of  the  Dreadnought  type),  seven  protected 
cruisers,  five  torpedo  gunboats,  fifteen  torpedo- 
boat  destroyers,  three  submarines,  two  auxiliary 
vessels,  and  a  score  of  other  craft.  This  relatively 
powerful  fleet  is  manned  by  7730  officers  and 
seamen,  and  having  regard  to  the  number  and 
value  of  the  Brazilian  ports  the  increase  in  her 
naval  personnel  and  materiel  foreshadowed  for 
191 1  would  appear  to  be  justified. 

The  intellectual  status  of  the  people  has  been 
greatly  elevated  by  the  enhanced  educational 
facilities  established  soon  after  the  Declaration 
of  Independence,  in  1822.  The  year  after,  a 
decree  empowered  any  citizen,  morally  and  intel- 
lectually fit,  to  conduct  a  private  school.  The 
education  provided  by  the  State  is  secular,  but 
the  Constitution  empowers  Congress  to  provide 
for  development  in  literature,  arts,  and  the 
sciences.  In  certain  States  primary  education 
is  compulsory,  and  along  these  lines  it  is  being 
satisfactorily  extended.  Public  and  private  prim- 
ary schools  in  1910  numbered  11,147  institutions, 


BRAZIL  165 

providing  for  some  566,000  scholars,  and  of 
secondary  schools  there  were  327,  with  30,000 
scholars.  A  Decree  of  September,  1909,  author- 
ized the  creation  of  free  industrial  schools  in  the 
capitals  of  States,  and  there  are  also  Trade 
Schools,  State-assisted,  in  about  a  dozen  leading 
centres.  Brazil  possesses  no  University  properly 
so-called,  but  the  higher  branches  of  education 
are  provided  for  at  such  seminaries  as  the  excellent 
Polytechnic  at  Rio  de  Janeiro,  the  law  colleges  of 
Sao  Paulo  and  Pernambuco,  the  medical  colleges 
at  Rio  and  Bahia,  the  School  of  Fine  Arts  at  Rio, 
and  the  mining  school  at  Ouro  Preto. 

The  potential  riches  of  the  respective  States  of 
Brazil  are  difficult  to  gauge,  and  the  present  and 
actual  wealth  of  the  country  is  somewhat  unevenly 
distributed.  The  three  biggest  States  (Matto 
Grosso,  Amazonas  and  Para),  much  of  whose 
territory  remains  unexplored,  are  to  a  large  extent 
vast  tracts  of  thick  forest,  rich  in  rubber,  magnifi- 
cent cabinet-woods,  valuable  medicinal  and  food 
plants,  piassava  (bass  fibre)  and  other  plants  of 
industrial  application  ;  but  practically  all  that  is 
exploited  is  rubber,  cocoa  and  brazil-nuts,  and  in 
comparison  with  rubber  the  rest  are  of  little  import- 
ance. The  rivers  teem  with  fish,  and  a  little  fish- 
glue  and  isinglass  are  exported,  but  less  every 
year  recently.  Some  cattle-raising  is  done  and 
the  export  of  hides  is  developing.  In  1908  the 
exports  of  these  three  States  amounted  to  over 
i^i 2,000,000  (Matto  Grosso,  ;^5 12,000). 


1 66  THE   TEN    REPUBLICS 

Maranhao,  Piauhy,  Ceara,  Parahyba  and  Rio 
Grande  do  Norte  may  be  described  as  poor  States. 
Their  principal  productions  are  hides  and  skins 
(especially  goats'  skins),  rum,  brazil-nuts,  the  wax 
of  the  carna/iuda  pa.\m,  cotton-seed  and  raw  cotton, 
and  rubber.  Between  them  they  exported  in  1908 
just  over  ;^i, 000,000  worth  of  these  commodities. 
Pernambuco  produced,  in  the  same  year,  sugar, 
skins,  cotton  and  carnahuha  wax  to  the  value  of 
^560,500.  Bahia's  staples  are  more  numerous 
and  tap  the  mineral  kingdom — cocoa,  rubber, 
coffee,  whale  oil,  skins  and  hides,  monazite  sand, 
diamonds  and  other  precious  stones,  piassava^ 
sugar  and  tobacco  being  exported  in  1908  to  the 
value  of  over  ^^3, 600,000.  Goyaz  and  Minas 
Geraes  rely  principally  upon  their  mineral  deposits, 
and  are  mentioned  later  in  connection  with  these, 
but  the  latter  also  sends  her  sister  States  dairy 
produce  and  other  pastoral  products  to  the  value 
of  some  i^2, 500,000  yearly. 

Parana  grows  huge  quantities  of  mate^  or  Para- 
guayan tea,  and  with  wax  and  bananas  her  exports 
amounted  to  ;^i, 221,000.  Santa Catharina,  another 
poor  State,  produced  for  export,  hides,  tobacco, 
mate^  sugar,  mandioca  flour,  bananas  and  a  little 
timber,  worth  in  all  about  ;^27o,ooo.  The  two 
great  staples  of  Rio  Grande  do  Sul,  a  cattle 
raising  State,  are  hides  and  inate^  and  of  these 
and  horns,  a  little  tobacco,  wool  and  copper  ore, 
she  exported  in  1908  just  short  of  i^i, 000,000 
worth. 


BRAZIL  167 

We  have  said  that  the  coast  of  Brazil  is  but 
little  indented  ;  but  while  there  are  few  large  bays 
there  are  many  good  and  safe  ports.  The  bay  of 
Rio  de  Janeiro  is  in  appearance  second  to  none 
but  Sydney  Harbour,  and  when  the  port  works, 
on  which  ^2,000,000  are  being  expended,  are 
complete,  Rio  will  have  the  best  accommodation 
in  South  America,  though  not  more  than  her 
growing  trade  requires. 

The  trade  movement  in  Santos  amounted  in  1910 
to  1,222,906  tons,  and  the  harbour  facilities  are 
now  quite  modern  and  of  the  first  order,  with 
excellent  anchorage  for  deep-draught  vessels. 
Recife,  the  port  of  Pernambuco,  is  being  dredged 
to  a  depth  varying  from  24  to  28  feet,  and  the 
shallows  in  the  channel  are  being  removed. 
Retaining  walls  and  a  breakwater  are  also  being 
constructed,  and  the  whole  scheme,  when  com- 
pleted in  1 9 14,  will  have  cost  about  ;^3, 400,000. 
In  the  port  of  Rio  Grande  the  entrance  channels 
are  being  dredged  to  a  depth  of  32  feet,  and  5000 
feet  of  quay  area  is  being  added  to  the  existing 
accommodation.  The  busy  river  ports  of  Para, 
one  hundred  miles  up  the  Amazon,  and  Manaos, 
nearly  one  thousand  miles  above  Para,  near  the 
confluence  of  the  River  Negro,  have  both  been 
immensely  improved  at  a  corresponding  cost,  and 
are  now  accessible  to  deep-draught  vessels  all  the 
year  round. 

Enough  has  been  written  about  the  beautiful 
capital  city  of  Brazil  to  render  it  almost  familiar. 


i68  THE   TEN    REPUBLICS 

Peculiar  morros^  or  steep  hills,  covered  with 
clusters  of  fine  villas  surrounded  by  deep  woods, 
dominate  the  city  proper,  which  slopes  gently 
down  to  the  symmetrical  bay.  The  magnificence 
of  its  long  avenues  and  its  parks  and  buildings 
impresses  every  visitor,  and  the  fact  is  easily 
credible  that  the  sum  of  ;^i 2,000,000  was  ex- 
pended before  the  city  assumed  its  present 
splendour.  But  a  fact  of  more  moment  is  that 
since  1902  Rio  has  been  transformed  from  a 
pest-house,  a  chosen  haunt  of  yellow  fever, 
wherein  to  stay  during  the  summer  was  to 
court  death,  into  one  of  the  healthiest  cities  in 
the  world.  It  is  but  just  to  record  that  this 
transformation  was  effected  by  Dr.  Oswaldo 
Gon9alves  Cruz,  under  the  beneficent  admin- 
istration of  President  Rodrigues  Alves  ;  and 
the  story  of  the  extermination  of  the  fever- 
carrying  mosquito  and  of  the  lowering  of  the 
mortality  (from  yellow  fever)  from  984  in  1902 
to  7iil  in  1909  is  a  suf^ficient  monument  to  the 
services  of  these  two  citizens  and  their  coadjutors. 
Rio  de  Janeiro  has  some  900,000  inhabitants. 

Sao  Paulo  is  the  third  most  important  city  in 
South  America,  and  has  grown  with  extraordinary 
rapidity.  Thirty  years  ago  it  was  a  town  of  about 
60,000  inhabitants,  a  bishopric  and  a  centre  of 
education.  To-day  it  can  boast  a  population  of 
300,000  souls,  and  some  of  the  finest  buildings 
and  avenues  in  Brazil.  It  is  a  healthy  city,  and 
its  height  above  sea-level  (2300  feet)  gives  it  the 


BRAZIL  169 

pleasantest  of  climates.  Sao  Paulo  is  within 
two  hours  by  rail  of  Santos. 

Santos  is  the  second  port  of  Brazil,  the  outlet 
for  practically  the  whole  of  Brazil's  chief  product. 
It  has  developed  with  its  neighbour  Sao  Paulo, 
and  to-day  has  a  population  of  73,000,  including 
its  municipal  district.  Its  gas  and  electric  light- 
ing, electric  trams  and  water  supply  are  the  work 
of  a  British  concern  ;  the  drainage  of  the  city, 
however,  was  designed  and  organized  by  the 
State.  The  Sao  Paulo  Railway,  of  which  Santos 
is  the  terminus,  puts  the  city  into  communication 
with  most  of  the  other  railways  of  Brazil. 

Para  and  Manaos  are  two  really  fine  cities,  and 
there  are  many  others  of  second  rank.  A  feature 
of  the  populous  centres  of  modern  Brazil  is  the 
increased  attention  paid  by  the  authorities  to  their 
sanitation. 

Railways  in  Brazil  come  into  three  categories — 
those  controlled  by  the  State,  those  under  Federal 
administration,  and  those  under  Federal  con- 
cession and  control.  Of  the  first  class  are  the 
Dourado  Railway,  Sao  Paulo — Goyaz  Railway 
and  Araraquara  Railway,  all  of  Sao  Paulo,  and 
the  Brazil  Federal  Railway,  of  Minas  Geraes. 
The  new  mileage  opened  for  traffic  during  1910 
on  these  lines  amounted  to  96  miles.  To  those 
of  the  second  category  a  total  of  180  miles  was 
added,  of  which  119  were  opened  on  the  Central 
Brazil  Railway  and  42  on  the  West  of  Minas 
•Railway.      In    the   third  category,   the    Madeira- 


I70  THE   TEN    REPUBLICS 

Mamore  Railway  was  extended  to  the  152nd  kilo- 
metres in  the  State  of  Matto  Grosso,  a  distance  of 
95  miles,  and  there  were  important  additions  to 
the  mileage  of  the  Baturite  Railway,  the  Leo- 
poldina  Railway,  the  North-Western  of  Brazil, 
and  others.  The  extensions  of  most  moment 
were  those  of  the  Sao  Paulo-Rio  Grande  Railway, 
which  joined  Affonso  Penna  to  the  river  Uruguay 
in  Rio  Grande  do  Sul,  and  Sao  Francisco  to 
Hansa  in  Santa  Catharina,  and  incidentally 
linked  Montevideo  and  Rio  de  Janeiro.  The 
ocean  passage  from  Rio  to  Montevideo,  via 
Santos,  now  takes  on  an  average  four  days, 
and  the  journey  by  rail  at  present  occupies  over 
eight  days,  but  when  the  line  is  in  regular 
running  order  the  railway  route  will  be  covered 
in  about  seventy-five  hours. 

In  all,  Brazilian  railways  were  lengthened  by 
1 161  miles,  about  half  of  which  were  actually 
constructed  in  1910.  This  gives  Brazil  a  total 
of  over  13,270  miles,  nearly  5000  of  which  have 
been  built  since  1889.  In  addition  there  are  some 
2900  miles  under  construction  and  at  least  5000 
miles  projected,  mainly  with  the  object  of  opening 
up  the  interior  of  the  country  and  of  linking  up 
existing  lines. 

Brazil's  two  principal  products  are  agricultural 
— coffee  and  rubber  together  representing  some 
80  per  cent  of  her  exports.  The  Northern  States 
of  Para  and  Amazonas  produce  more  rubber  than 
all    the  other   countries  of   the  world  combined, 


BRAZIL  171 

while  nearly  four-fifths  of  the  coffee  consumed 
comes  from  the  south  of  Brazil,  and  principally 
from  the  State  of  Sao  Paulo.  Coffee,  indeed,  has 
''  made  "  Sao  Paulo,  and  Sao  Paulo  is  so  insepar- 
ably bound  up  with  coffee  that  State  and  product 
must  be  discussed  together. 

The  State  of  Sao  Paulo  has  an  area  of  112,278 
square  miles  and  a  seaboard  on  the  Atlantic  of 
some  300  miles  in  length.  Its  population,  esti- 
mated at  3,400,000,  is  about  one-sixth  of  the  entire 
population  of  Brazil,  and  has  largely  been  formed 
by  foreign  immigration,  which,  since  1887,  has 
averaged  numerically  58,885  a  year  and  nearly 
90  per  cent  of  the  entire  influx.  It  is  calculated 
that  in  the  State  of  Sao  Paulo  there  are  600,000 
Italians,  140,000  Spaniards,  100,000  Portuguese, 
70,000  Germans  and  30,000  Syrians,  which  must 
represent  a  serious  drain  on  the  labour  element  of 
the  nations  mentioned. 

The  growth  of  Sao  Paulo  has  been  remarkable 
in  every  way.  Previous  to  1867  it  had  not  a  mile 
of"  railway  ;  now  it  has  over  700  miles  of  line  open 
to  traffic,  and  the  Sao  Paulo  (city)  railway  station 
is  the  finest,  architecturally,  in  the  world.  In 
1868  there  was  no  factory  of  importance  in  the 
State  ;  to-day  there  are  twenty-three  cotton  mills, 
with  a  total  capital  of  i^2, 600,000  ;  jute  mills  which 
manufacture  imported  fibre  into  millions  of  coffee 
sacks  ;  a  mill  which  spins  fibre  out  of  a  local  plant 
named  ''aramina,"  much  used  as  a  substitute  for 
jute;  over  a  hundred  breweries,  practically  supply- 


172  THE   TEN    REPUBLICS 

ing  the  whole  of  the  country  with  a  beverage  that 
has  become  very  popular  amongst  Brazilians  ; 
many  factories  for  the  manufacture  of  vermicelli 
and  other  foods;  and  bottle,  shoe  and  hat  factories. 
In  all  there  are  334  industrial  establishments  in  Sao 
Paulo,  with  a  total  annual  production  of  ;^8,o5o,ooo. 
The  figures  which  follow  are  eloquent  of  the 
development  of  the  export  trade  of  Santos,  the 
principal  and  practically  the  only  port  of  Sao 
Paulo,  and  of  the  self-supporting  capabilities  of 
the  State  as  shown  by  the  balance  of  trade  : — 


Exports. 
.   20,284,872 

Imports. 
6,827,211 

1906  . 

1907 . 

•   21,551,187 

8,553.459 

1908 . 

•  i7»329»53o 

7,126,843 

1909 1 

.  27,074,622 

7.145,045 

I9IO  . 

•  19.747,942 

9,487,995 

Sao  Paulo  also  has  a  considerable  cattle-raising 
industry,  comprising  about  a  million  head  of  beef- 
cattle.  Some  130,000  beeves  and  132,000  hogs 
are  slaughtered  annually  besides  sheep  and  goats. 
It  is  estimated  that  the  number  of  horses  amounts 
to  230,000  and  that  of  mules  to  120,000.  The  strain 
of  the  live  stock  in  general  is  superior,  and  for 
some  time  has  been  improved  by  imports  from 
England,  France,  Argentina,  Uruguay  and  other 
countries. 

This  purely  agricultural  state  also  grows  sugar- 
cane, cotton,  bananas,  rice,  wheat,  beans,  tobacco, 

1  1909  was  an  exceptional  year  owing  to  the  coffee  valorization 
scheme,  which  caused  a  rush  of  exports  in  the  latter  half  of  1909 
whereby  the  first  half  of  1910  was  abnormally  affected. 


BRAZIL 


173 


maize  and  grapes,  but  these  products  are  unim- 
portant when  compared  with  the  coffee  output. 
The  value  of  the  coffee  exported  during  1909 
reached  the  extraordinary  figure  of  ^32,384,536, 
of  which  ;^26,042,752  was  shipped  through  the 
port  of  Santos  and  the  greater  part  of  the 
remainder  through  Rio  de  Janeiro.  The  principal 
consuming  countries  were  : — 


Tons. 

Value. 

United  States  . 

.      423*239 

^i3,553>34o 

Germany  . 

.       199,192 

6,301,316 

France 

.       100,424 

3,205,200 

Holland    . 

.         86,636 

2,789.485 

Great  Britain    . 

.         32,410 

1,051,768 

There  is  no  space  to  describe  the  scheme  of 
'*  valorization  "  of  coffee  exportation,  which  up  to 
the  present  has  worked  exceedingly  well  for  the 
producers  by,  broadly,  restricting  plantation  and 
export  and  maintaining  the  price  of  the  commodity. 

The  next  most  important  product  of  Brazil  is 
rubber,  and  the  wealth  of  the  North  Brazilian 
forests  in  the  lievea  hraziliensis  is  by  now  famous. 
The  zone  of  production  follows  pretty  closely  the 
basin  of  the  Amazon  and  its  tributaries,  and  the 
two  great  rubber  centres  are  Belem  do  Para,  the 
capital  of  the  State  of  Para,  and  Manaos,  capital 
of  the  State  of  Amazonas.  Rubber  of  different 
and  inferior  grades  is  found  in  Ceara,  Pernam- 
buco,  Bahia,  Rio  and  Sao  Paulo  States,  but  in 
insignificant  quantities.  It  is  calculated  that  in 
Brazilian  territory  the  extent  of  rubber-holding 
forests  at  present  untapped  is  at  least  equal  to  the 


174  THE    TEN    REPUBLICS 

acreage  in  exploitation,  but  this  must  be  regarded 
less  as  a  calculation  than  as  guess-work.  Practi- 
cally no  planting  is  done,  but  *' estates"  are 
generally  productive,  if  the  trees  are  scientifically 
tapped  and  periodically  rested,  for  twenty  years. 
The  tree  which  yields  '^  caucho,"  a  different  species 
of  gum  peculiar  to  the  Amazon  district,  will  not, 
however,  survive  tapping,  and  is  therefore  cut 
down  and  ''  bled  "  into  a  leaf-lined  pit ;  so  that  in 
course  of  time  this  tree  must  disappear,  and  with 
it  a  considerable  source  of  profit. 

Rubber  exports  have  increased  from  13,390 
tons  in  1887  and  22,740  tons  in  1897  to  36,490 
tons  in  1907  and  39,027  tons,  worth  ^^'18,315, 678, 
in  1909,  and  upon  the  whole  prices  have  at  the 
same  time  improved.  The  principal  consumers 
of  the  1909  exportation,  to  the  total  of  which 
Para  contributed  17,244  tons  and  Amazonas  17, 181 
tons,  were  as  follows  : — 


Value, 

Tons. 

£ 

United  States     . 

.      20,239 

9,698,414 

Great  Britain     . 

.       14,460 

6,644,220 

France 

.         2,482 

1,088,806 

Germany    . 

994 

406,487 

In  1909  exports  of  hides  and  skins  amounted 
to  39,681  tons,  value  ^2,704,430.  Hides  (wet 
salted)  came  principally  from  the  huge  pastoral 
State  of  Rio  Grande  do  Sul  and  from  Rio  de 
Janeiro  and  Bahia,  and  dried  skins  from  Ceara 
in  the  north.  Brazilian  hides  and  skins  generally 
have   an    excellent   reputation   for   size  and  con- 


BRAZIL  175 

dition,  and  obtain  corresponding  prices.  Of  the 
1909  production  Germany  took  hides  and  a  few 
tons  of  skins  to  the  value  of  ^729,712  ;  the  United 
States  mostly  skins,  ^^720,588  ;  France,  ^^447, 916  ; 
and  Great  Britain,  ^134,234. 

'*■  Mate  "  or  Paraguayan  tea,  scarcely  known  in 
Europe  and  the  United  States,  is  produced  in 
such  abundance  by  the  Southern  States  that 
in  1909  it  constituted  the  fourth  most  important 
article  of  export,  a  total  of  58,017  metric  tons 
being  shipped,  value  ^^1,605,066.  Argentina  and 
Uruguay  were  the  greatest  consumers,  taking 
43,161  and  11,877  tons  respectively.  Germany 
took  some   14  tons. 

Cocoa,  which  until  1907  ranked  third  in  im- 
portance as  a  Brazilian  product,  is  now  fifth, 
although  since  1903  the  cocoa  exports  have  in- 
creased by  over  60  per  cent.  In  1907  Brazil 
became  the  chief  cocoa-producing  country  of  the 
world  with  a  total  of  24,397  tons,  and  the  1909 
figures  show  a  further  great  improvement  in  the 
production.  Of  the  total  of  33,818  tons,  worth 
;^i,547,974,  the  State  of  Bahia  produced  as 
usual  about  85  per  cent.,  or  28,264  tons,  Para 
3783  tons,  and  Manaos  under  200.  The  principal 
consumers  were :  France,  8650  tons,  ;6^395,473  ; 
Germany,  8346  tons,  ^^260,340;  United  States, 
7682  tons,  ^^350,973 ;  Great  Britain,  5666  tons, 
^260,517  ;  and  Holland,  1546  tons,  i^7 1,444. 

Next  in  importance  after  these  five  great  staples 
come  tobacco,    29,782  tons  (27,138  tons  to  Ger- 


176  THE   TEN   REPUBLICS 

many),  ;^  1,288, 736  ;  sugar,  68,483  tons,  ;^649,5oi  ; 
cotton,  9969  tons,  ;^572,332  ;  bar  gold,  4^  tons, 
^450,580;  manganese,  241,000  tons,  ^^346,062  ; 
'^castanha"  (brazil  nuts)  to  the  value  of  ;^298,742 
(United  States,  ^^172, 049  ;  Great  Britain,  ;^96,36i  ; 
Germany  the  remainder);  Carnahuba  wax  (chiefly 
from  Pernambuco  and  Ceara),  3042  tons,  over 
half  to  Germany,  ;^246,i27;  bran,  38,158  tons, 
;^242,ii4;  cotton-seed,  33,615  tons,  ;^i42,28o; 
monazite  sand  (found  in  great  quantities  on  the 
shores  of  Rio  and  Bahia  States),  6462  tons, 
;^i4i,6i9,  and  precious  stones,  chiefly  from 
Bahia,  ;^57,642,  making,  with  miscellaneous 
exports  to  the  value  of  ;^672,944,  a  total  export 
trade  of  ;^6i,666,366,  for  1909,  which,  compared 
with  the  1908  total  of  ;^44, 175,980,  shows  an  in- 
crease of  ;^i 7,490, 386,  or  over  28  per  cent. 

If  this  record  of  the  development  of  her  export 
trade  be  considered  in  conjunction  Avith  the  fact 
that  the  imports  for  the  same  year  (^^35,938,025) 
were,  in  proportion  to  the  exports,  as  58*3  to  100, 
Brazil's  commercial  and  economical  position  in 
1909  can  be  gauged  with  some  accuracy.  The 
following  table  compares  the  position  during 
recent  years  of  the  five  countries  which  are  the 
principal  consumers  of  Brazilian  exports  : — 


1904. 

1908. 

1909. 

£ 

£ 

£ 

United  States 

13,872,077 

17,706,932 

24,763,460 

Germany    . 

4,492,375 

6,964,846 

9,626,090 

Great  Britain 

6,374,696 

6,521,890 

9,966,436 

France 

1,998,831 

3,376,069 

5,302,824 

Holland      . 

764,314 

2,030,716 

2,878,034 

BRAZIL  177 

In  the  matter  of  imports^  which  below  are  com- 
pared for  the  same  years,  it  is  interesting  to  note 
the  fluctuations  in  Great  Britain's  once  pre- 
eminent trade  : — 


1904. 

1908. 

1909. 

£ 

£ 

£ 

Great  Britain  . 

7,190,367 

10,224,565 

9,809,061 

Germany 

8,285,429 

5,271,682 

5,694,575 

United  States 

2,884,775 

4,298,439 

4,527,325 

Argentina 

2,666,503 

3,596,206 

3,644,259 

France 

2,316,773 

3.199.077 

3.784,114 

Amongst  those  of  Brazil's  natural  resources 
whose  existence  or  extent  is  not  indicated  by  the 
export  figures  are  its  various  mineral  deposits.  It 
will  be  remembered  that  for  nearly  a  century  and 
a  half  ( 1 728-1 871)  Brazil  was  the  world's  first 
diamond-producing  country,  and  there  are  those 
who  believe  that  before  long  she  will  regain  her 
position.  Alluvial  and  surface  diamondiferous 
deposits  are  worked,  for  the  most  part  in  primitive 
fashion,  in  the  States  of  Bahia  (which  exports  the 
^'carbonado,"  the  black  diamond  used  for  diamond 
cutting)  Goyaz,  Minas  Geraes,  Matto  Grosso  and 
Parana,  and  the  gravels  often  contain  gold  and 
platinum.  Diamantina,  five  hundred  miles  north 
of  Rio,  is  the  most  productive  district,  and  is 
now  being  worked  by  more  scientific  methods, 
but  the  industry  as  a  whole  suffers  from  lack  of 
labour  and  transport  facilities.  Production  figures 
are  unreliable,  for  contraband  is  rife,  but  all  Brazil 
is  estimated  to  produce  from  ^1,000,000  to 
;^2, 000,000  annually. 

N 


178  THE   TEN    REPUBLICS 

The  manganese  ores  occur  chiefly  in  Minas 
Geraes,  and  also  in  Bahia,  Matto  Grosso,  and 
other  States.  In  1907,  a  record  year,  236,778  tons 
were  exported,  worth  ;^503, 137,  but  although  the 
lodes  are  remarkably  rich  the  production  has 
since  materially  declined. 

It  is  claimed  that  Brazil  is  one  of  the  richest 
countries  of  the  world  in  iron,  and,  indeed,  in 
Minas  Geraes  the  ores  form  mountains  rather 
than  seams.  They  occur  in  every  State,  and 
abound  in  Sao  Paulo,  Santa  Catharina,  Rio 
Grande  do  Sul,  and  the  States  wherein  manganese 
is  found.  At  present  this  source  of  wealth  is 
practically  untouched,  and  throughout  Brazil  there 
are  but  two  or  three  concerns  of  importance 
working. 

Gold  is  being  extracted  in  Minas  Geraes,  Goyaz, 
Matto  Grosso,  Bahia,  Sao  Paulo,  Rio  Grande  do 
Sul,  and  Maranhao.  Minas  Geraes  is  the  princi- 
pal region,  and  amongst  the  mines  in  that  State 
are  the  well-known  Morro  Velho,  Sao  Joao  d'El- 
Rey  and  Passagem,  the  first  named  of  which  was 
established  in  1834.  The  industry  is  somewhat 
heavily  taxed,  but  the  total  annual  output  of  bar 
gold  from  1904  to  1908  maintained  a  fairly  even 
average  of  ^38,385* 

Brazil  is  not  a  manufacturing  country,  and  her 
industrial  establishments  number  only  some  3000, 
employing  150,000  hands,  and  having  a  total 
capital  of  ;^42,ooo,ooo. 

Brazil's    total    trade    in     1910    amounted     to, 


BRAZIL  179 

approximately,  ;^i  11,000,000,  an  increase  of  some 
;^io,ooo,ooo  over  that  of  1909.  The  balance  of 
trade  in  her  favour,  however,  decreased  very 
appreciably,  her  imports  rising  from  ^35,938,025 
in  1909  to  ;^47,87i,974  in  1910,  while  her  exports 
fell  from  ;^63, 724,440  to  ^^63,091, 543.  The  balance 
of  trade  in  1910  was  therefore  only  about 
;^i5,2i9,564,  as  compared  with  ^^26, 585,086  in 
1909.  The  decrease  in  exportation  was  repre- 
sented principally  by  a  restricted  coffee  output, 
and  amongst  the  reasons  for  the  increased  im- 
portation was  the  raising  of  the  conversion  rate 
from  I5d.  to  i6d.,  thereby  increasing  both  the 
purchasing  power  of  the  milreis  and  the  specific 
value  of  the  imports. 

Details  of  the  1910  exportation  are  available 
only  as  far  as  October,  but  they  show  to  some 
extent  the  movement  of  the  principal  staples. 
They  are  as  follows  : — 

1909  (first  ten  months). 


Value. 

Quantity — Tons. 

£ 

Coffee . 

736,249 

23.947,324 

Rubber 

3i>3i2 

14,228,593 

Tobacco 

28,185 

1,274,488 

Sugar. 

46,709 

432,205 

Mat^   . 

46,349 

1,312,562 

Cocoa . 

26,824 

1,273,580 

Cotton 

7,164 

292,341 

Hides  . 

30>528 

1,527,594 

Skins  . 

3>4i5 

833.543 

[8o 


THE   TEN    REPUBLICS 


1910  (first  ten 

months). 

Value. 

C)u; 

iiitily — Tons. 

£ 

Cofifee. 

.      435.896 

18,479,005 

Rubber 

31.494 

21,080,189 

Tobacco 

33.563 

1.581,344 

Sugar . 

58,141 

673,445 

Mat6    . 

47,818 

1,545,066 

Cocoa  . 

21,838 

1,049,825 

Cotton 

7.746 

635.237 

Hides  . 

30,283 

1,509,810 

Skins  . 

2,459 

635.003 

Exports  and  imports  to  and  from  Great  Britain 
cannot  be  stated,  but  the  imports  in  1910  from  the 
United  States  showed  a  slight  increase  over  those 
of  the  previous  year. 

The  revenues  of  the  Federal  Budget  of  Brazil 
are  composed  of  62  per  cent,  of  the  custom-house 
duties,  1 1  per  cent,  of  the  consumo  (consumption 
tax),  20  per  cent,  of  the  interior  imposts,  and 
7  per  cent,  of  various  other  taxes. 

In  1910  the  revenue  from  these  sources  was 
;^3i,3i5,325,  and  the  expenditure  ;^30,894,040. 
The  following  table  shows  the  Budget  for  the 
present  year : — 


Estimated  ordin-        £ 
ary    receipts  29,565,852 

Estimated  spe- 
cial   receipts     3,112,666 


32,678,518 


Estimated  ordin- 
ary expendi-  £ 
ture      .         .    33,586,840 

Estimated  spe- 
cial expendi- 
ture     .  .      3,116,666 
36,703,506 


The   estimated   deficit  is  therefore   ^^4, 024,988. 


BRAZIL  i8i 

The  expenditure  exceeds  that  of  1910  by 
;^4, 256,666,  the  increase  being  mainly  on  the 
Departments  of  War,  Marine,  Agriculture,  and 
Public  Works.  The  service  of  the  exterior  debt 
demands  ^3,586,250,^  and  Marine  and  War  re- 
quire the  heavy  sums  of  i^4, 2 1 6,433  and  i^5, 254,966 
respectively,  an  outcome  of  the  growing  naval 
rivalry  of  the  South  American  Powers. 

In  his  message  this  year  President  da  Fonseca 
laid  stress  on  the  deficit  in  order  to  recommend  to 
Congress  a  reduction  of  expenditure,  and  he  has 
outlined  a  programme  of  economics  which  he  is 
determined  to  fulfil.  He  asked  Congress  to  take 
prompt  measures  to  equalize  receipts  and  expendi- 
ture, but,  on  the  other  hand,  he  was  able  to  report 
that  the  revenue  of  the  first  three  months  of  191 1 
showed  an  increase  of  ;^i,033,333  over  that  of  the 
corresponding  period  of  1910,  and  that,  generally 
speaking,  the  country's  production  and  its  value 
had  improved  simultaneously. 

The  gold  milreis  (value  27  pence)  is  the  nominal 
monetary  unit  of  Brazil,  but  the  old  20,  10,  and 
5  milreis  gold  pieces  have  disappeared  from  circu- 
lation, and  the  actual  unit  is  the  paper  milreis^ 
worth  16  pence. 

Properly  to  comprehend  the  Brazilian  currency 
it  must  be  remembered  that  in  1906  a  **  Conversion 
Chest "  was  established,  which  receives  gold  coin 
of  legal  currency  and  against  this  delivers  notes, 
payable  to  bearer,  equivalent  in  value  to  the  gold 

^  In  1 9 10  the  total  indebtedness  of  Brazil,  including  that  of  all 
the  States  and  municipalities,  stood  at  ;^232, 828,000. 


i82  THE   TEN   REPUBLICS 

received,  calculated  (since  towards  the  end  of 
1 910)  at  the  rate  of  16  pence  per  viilreis^  or  thou- 
sand reis  (written  Rs.  i  $000). 

The  notes  issued  are  legal  tender,  and  are 
redeemed  at  the  '^Conversion  Chest"  at  sight  in 
gold  coin,  one  sovereign  {^£\)  being  the  equivalent 
of  Rs.  15  looo.  All  redeemed  notes  are  destroyed, 
and  in  this  way  it  is  hoped  eventually  to  establish 
a  gold  standard. 

Notes  are  of  the  denomination  of  Rs. 500  $000, 
Rs. 200  looo,  Rs.  100  $000,  Rs.  50  $000,  Rs.  20  looo, 
Rs.  10  looo,  RS.5I000,  Rs.2|ooo,  and  Rs.  ilooo. 
Coins  are  :  Silver,  Rs.2|ooo,  Rs.  ilooo,  and  500 
reis  or  half  a  ?ntlreis ;  nickel,  400,  200  and  100 
reis ;  copper,  40  and  20  reis. 

Brazil  has  no  external  difficulties  for  the 
moment,  all  her  boundary  questions  having  been 
peacefully  settled  some  years  ago.  The  last  of 
these  disputes  was  with  Bolivia  as  to  the  posses- 
sion of  the  Acre  Territory,  and  this  ended  in  the 
payment  by  Brazil  of  ;^2, 000,000  and  the  cession 
of  certain  lands  on  the  Matto  Grosso  frontier  in 
exchange  for  a  large  segment  of  the  richest  rubber 
territory  in  South  America. 

Internal  politics  are  also  calm,  and  it  is  to  be 
hoped  that  the  President  will  be  able  to  overcome 
a  tendency  among  his  own  party  to  split  into  two 
sections  on  certain  questions. 

It  is  also  essential  that  he  should  be  enabled 
to  carry  out  the  intentions  to  establish  an  honest 
Government  that  must  be  justly  accredited  to  him. 


CHAPTER  VIII 

CHILE 

That  its  characteristics  may  be  appreciated,  Chile 
should  be  approached  from  that  part  of  Argentina 
known  as  the  Gobernacion  del  Neuquen.  Arid, 
with  little  vegetation  and  no  game,  the  country 
grows  colder  and  bleaker  until  the  icy  ridges  of 
the  Andes  have  been  surmounted  ;  but  once  the 
snow-line  has  been  left  behind  the  character  of  the 
landscape  changes.  The  green  trees,  the  flowers, 
and  the  waterfalls  invite  the  traveller  to  dismount, 
and  the  gay  scenery  below  suggests  to  him  a 
pleasant  mental  picture  of  the  land  he  has  entered 
upon — its  bracing  mountains,  its  fertile  valleys, 
and  its  three  thousand  miles  of  territorial  seas. 

Chile  is  a  long  narrow  strip  of  hilly  coast-line, 
stretching  the  whole  length  of  the  South  American 
Continentfrom  Cape  Horn  to  theeighteenth  parallel 
of  south  latitude.  It  is  bounded  by  the  PacificOcean 
on  the  west  side,  and  by  the  summits  of  the  Andes 
on  the  east.  The  area  is  a  little  under  three 
hundred  thousand  square  miles,  its  population  four 
million  ;  that  is  to  say,  that  the  proportionate  share 
of  every  Chilian  in  his  native  land  is  fifty  times 

183 


i84  THE   TEN    REPUBLICS 

that  of  every  Englishman.  Owing  to  its  moun- 
tainous character  and  its  shape,  Chile  comprises 
regions  differing  widely  in  climate  and  produc- 
tions. In  the  rainless  north  are  found  mines  and 
nitrate  fields  ;  the  central  provinces  are  given  over 
mainly  to  agriculture  ;  the  cold  south  is  densely 
wooded. 

The  Spanish  Conquest  of  vSouth  America  has 
been  already  referred  to.  Pizarro  sent  Alamagro 
to  explore  the  country  to  the  south  of  Peru,  and 
shortly  afterwards  a  more  systematic  settlement 
was  undertaken  by  Pedro  de  Valdivia.  But  the 
invaders  took  little  but  hard  blows  from  the 
Indians  of  the  South-West  ;  indeed,  it  is  only  of 
recent  years  that  the  Araucanians  have  recognized 
the  authority  of  Chile.  The  fierce  struggles  with 
the  natives,  and  the  need — in  the  absence  of  the 
precious  metals — to  wrest  a  living  from  the  soil, 
have  given  the  Chilian  the  masculine  qualities 
which  mark  him  out  from  his  neighbours,  but 
for  many  years  his  progress  was  slow.  The 
Spanish  system  hampered  trade  ;  there  was  little 
gold  in  the  country,  and  what  there  was,  was 
monopolised  by  the  Church  and  the  Spanish 
officials. 

But  at  the  beginning  of  the  nineteenth  century 
a  thousand  rhetoricians  were  inveighing  against 
the  doctrines  of  feudalism,  and  were  setting  up  in 
their  place  those  of  the  French  Revolution  ;  the 
*'  Divine  Right  of  Kings  "  was  to  give  way  to  the 
**  Rights    of    Man."     It   was    no    time  for    a   roi 


i86  THE    TEN    REPUBLICS 

faineant^  and  when  Ferdinand  VII  of  Spain  was 
restored  by  others  to  the  dominions  he  had  declined 
to  defend,  it  was  beyond  him  to  reassert  his 
authority.  Spanish  America  had  refused  to  recog- 
nize the  makeshift  Government  which  ruled  Spain 
in  the  absence  of  her  lawful  King,  and  upon  his 
restoration  she  fought  against  him  for  the  liberty 
she  had  lately  enjoyed.  A  fierce  struggle  took 
place,  but  in  1817  Bernardo  O'Higgins,  assisted 
by  the  Argentine  general,  San  Martin,  defeated  the 
Royalists  at  Chacabuco,  and  the  independence  of 
Chile  was  proclaimed.  But  the  newly  established 
Republic  had  not  yet  secured  peace,  for  the 
Spanish  forces  were  firmly  established  in  Peru. 
To  attack  them  a  navy  was  requisite.  '^  The  King 
of  Spain  won  South  America  with  five  little  ships. 
We  shall  drive  him  from  it  with  just  the  same 
number,"  said  O'Higgins,  and  Lord  Cochrane — an 
English  sailor  too  intractable  for  his  own  country's 
service — acted  on  these  instructions.  *'  In  two  and 
a  half  years  Cochrane  had  captured  or  destroyed 
every  ship  in  the  Spanish  navy  on  the  coast.  He 
had  suppressed  piracy,  taken  the  strongest  fortress 
of  Spain,  and  incidentally  made  Peru  and  Chile 
free  and  independent  States."  {Chile,  G.  F. 
Scott  Elliot.) 

But  freedom  did  not  mean  tranquillity  ;  the  vic- 
torious democrats,  confronted  with  constructive 
problems,  suffered  in  popularity  through  their 
ecclesiastical  and  financial  policy.  A  period  of 
confusion  followed,  and  thus  there  was  formed  in 


CHILE  187 

Chile  that  distrust  of  the  revolutionary  elements  in 
society  to  which  she  owes  much  of  her  subsequent 
prosperity. 

For  the  next  thirty  years  Chile  throve  under  a 
Government  that  its  enemies  called  ''  reactionary  " 
— that  is,  a  Government  which  denied  political 
power  to  classes  incapable  of  exercising  it.  The 
period  referred  to  was  one  of  order  and  progress 
in  spite  of  three  liberal  administrations  and  a  war 
against  Peru  and  Bolivia,  in  which  Chile  was 
victorious.  Immigration  was  encouraged  ;  com- 
munications were  improved  ;  and  much  was  done 
to  make  the  financial  position  more  stable.  Later 
on,  a  more  liberal  policy  was  introduced  as  the 
people  became  educated  in  self-government.  In 
1865  a  dispute  with  Spain,  which  ended  in  the 
bombardment  of  Valparaiso,  brought  home  to 
Chile  the  importance  of  sea  power  ;  the  lesson 
was  taken  to  heart,  and  when  Chile  went  to  war 
with  Peru  and  Bolivia  in  1879  her  victory  was 
largely  due  to  her  fleet. 

Nitrate  fields  had  been  discovered  in  the  coast 
province  of  Antofagasta  ;  Chilian  capital  was  in- 
vested in  them,  and  the  dissatisfaction  arising  out 
of  the  taxation  imposed  by  Bolivia  resulted  in 
war.  Peru  was  compelled  by  a  secret  treaty  to 
join  Bolivia,  and  it  was  on  her  that  fell  the  brunt 
of  a  conflict  which  lasted  for  three  years.  When 
peace  was  made  Chile  acquired  not  only  Anto- 
fagasta, but  the  no  less  rich  Peruvian  province  of 
Tarapaca.     It  was  agreed  that  Chile  should  ex- 


i88  THE   TEN    REPUBLICS 

ercise  full  sovereignty  over  Tacna  and  Arica  during 
ten  years,  at  the  end  of  which  time  the  inhabitants 
should  be  convoked  to  a  plebiscite  in  order  to 
decide  the  definite  nationality  of  the  territory,  the 
country  which  should  gain  it  paying  the  other  as 
an  indemnity  one  million  sterling.  Peru  and 
Chile  are  at  present  at  variance  as  to  the  basis  of 
the  plebiscite. 

Hitherto  Chile  had  been  distinguished  from  her 
sister  states  by  the  capacity  she  had  shown  for 
self-government  ;  political  differences  had  rarely 
led  to  bloodshed  ;  but  in  1891  there  broke  out  a 
civil  war,  conducted  the  more  earnestly  for  the 
habitual  self-control  of  the  nation.  It  was  caused 
by  the  endeavour  of  President  Balmaceda,  a 
Liberal,  to  force  upon  Chile  unconstitutional 
methods  of  government.  When  at  last  the  Con- 
stitutionalists were  successful  the  war  had  cost 
ten  thousand  lives  and  much  treasure.  Balma- 
ceda committed  suicide.  The  new  Government 
wisely  conceded  an  amnesty,  and  of  late  years  the 
peaceful  progress  of  the  country  has  been  un- 
interrupted. The  most  important  events  have 
been  the  settlement  of  a  difficult  boundary  ques- 
tion with  Argentina,  and  an  earthquake  which 
caused  terrible  destruction  in  Valparaiso  and  else- 
where in  1906. 

From  the  above  sketch  the  reader  will  be  pre- 
pared to  find  that  the  Republic  of  Chile  has  been 
organized  upon  a  solid  foundation.  The  constitu- 
tion drawn  up  in  1833,  and  slightly  modified  later, 


CHILE  189 

established  three  powers  in  the  State  :  the  execu- 
tive, the  judicial,  and  the  legislative. 

The  executive  power  is  entrusted  to  the  Presi- 
dent of  the  Republic,  who  is  elected  by  delegates 
specifically  chosen  for  that  purpose  by  the  people. 
He  holds  office  for  five  years  and  is  ineligible  for 
reappointment  during  the  next  presidential  term. 
The  President  is  assisted  by  a  cabinet  of  six 
ministers  and  also  by  a  Council  of  State,  whose 
approval  must  be  obtained  for  decrees  of  a  certain 
character. 

The  judicial  power  is  exercised  by  a  Supreme 
Court  of  Justice,  which  supervises  all  the  inferior 
courts  of  the  country,  and  suggests  the  list  of  names 
for  the  Council  of  State  which  considers  the  nom- 
inations before  they  are  submitted  to  the  President. 
The  more  important  judges  are  appointed  by  the 
President  with  the  Council  of  State.  The  mayors 
of  cities  and  other  local  officials  are  elected  by  the 
citizens,  the  President  of  the  Republic  only  nom- 
inating the  ''  intendentes  "  of  the  provinces. 

The  legislative  power  is  vested  in  the  National 
Congress,  which  consists  of  two  Houses — a  Senate 
composed  of  thirty-two  members  and  a  Chamber  of 
Deputies  composed  of  ninety-five  members.  Both 
bodies  are  chosen  by  the  same  electors,  the  former 
being  returned  by  the  provinces  for  six  years, 
and  the  latter  by  the  departments  for  three 
years. 

Deputies  and  Senators  must  have  reached  the 
age  of  twenty-one  and  thirty-six  respectively  and 


I90  THE   TEN    REPUBLICS 

must  possess  a  specified  income ;  they  are  not 
paid  for  their  services.  A  considerable  section  of 
the  population  is  thus  excluded  from  the  legisla- 
ture, a  circumstance  which  may  account  for  the 
conservative  attitude  of  that  body  in  religious 
questions.  ''The  Roman  Catholic  religion  is 
declared  by  the  constitution  to  be  the  religion 
of  the  State,  and  the  President  is  required  to  pro- 
tect it." 

The  State  even  goes  so  far  as  to  subsidize  the 
Church  out  of  the  national  budget,  and,  in  return, 
certain  civil  authorities  have  to  be  consulted,  as 
is  common  in  South  American  countries,  about 
high  ecclesiastical  appointments.  The  Church 
possesses  considerable  property  of  its  own,  and 
numbers  among  its  clergy  men  of  higher  social 
rank  than  is  customary  in  South  America.  On 
the  other  hand  complete  religious  toleration  exists 
and  civil  marriage  is  obligatory. 

The  seat  of  Government  is  Santiago,  a  fine 
town  of  nearly  400,000  inhabitants  situated  nearly 
2000  feet  above  the  sea  in  the  province  of  the  same 
name.  Before  inquiring  into  the  policy  adopted 
by  the  Government  some  account  must  be  given 
of  the  people  it  represents. 

The  Chilians  are  bred  from  two  hardy  fighting 
stocks,  the  Spanish  and  the  Araucanian  ;  they 
claim  two  advantages  over  the  South  American 
peoples :  in  the  first  place  there  is  no  negro  blood 
in  their  veins,  in  the  second  the  percentage  of 
Spanish  is  high — the  ruling  classes  being  Euro- 


CHILE  191 

pean  by  descent.  The  expression  '*  ruling  classes" 
may  seem  inappropriate  until  the  restrictions  on 
the  right  to  vote  are  examined.  It  will  then  be 
found  that  political  power  resides  in  a  fraction  of 
the  people,  for  the  suffrage  is  not  granted  to  those 
who  are  illiterate.  The  Government  is  alive  to 
the  advantages  of  education — which  is  provided 
without  charge  ;  but  the  difficulty  of  reaching  the 
rural  population  is  too  great  for  it  to  be  made 
compulsory  at  present.  Perhaps  it  is  because  the 
Chilians  are  satisfied  of  the  purity  of  their  own 
race  that  they  exhibit  none  of  the  jealousy  of 
foreigners,  which  has  retarded  the  progress  of 
some  of  the  neighbouring  States. 

Foreigners,  indeed,  their  capacity  once  proved, 
have  never  been  grudged  high  positions,  and 
history  shows  that  Cochrane  and  O'Higgins 
and  others  hailing  from  the  United  Kingdom 
repaid  Chile  good  measure  for  her  hospitality. 

She,  on  her  side,  has  done  everything  possible 
to  encourage  immigration  ;  repeated  efforts  have 
been  made  to  obtain  colonists  from  Europe,  and 
lands  have  been  set  apart  for  them  in  the  forest 
provinces.  As  a  result  of  this  policy  there  are 
several  prosperous  German  settlements  in  the 
south. 

Another  instance  of  this  intelligent  cosmopoli- 
tanism is  found  in  the  constitution  of  the  fighting 
services,  whose  record  reflects  credit  on  the  system. 
The  navy  has  followed  the  methods  of  Great 
Britain,  whose  yards  have  furnished  the  Chilian 


192  THE   TEN   REPUBLICS 

warships,  while  the  army  is  German  in  organiza- 
tion. It  is  German,  too,  in  that  it  is  a  national 
militia  in  which  all  able-bodied  citizens  are  obliged 
to  serve. 

We  have  now  seen  that  the  Chilians  have  ac- 
cepted democratic  principles  with  the  security  to 
the  citizen  that  they  imply,  and  that  they  have 
adapted  them  so  as  wisely  to  prevent  the  illiterate 
classes  from  controlling  the  national  administra- 
tion. They  have  thus  established  a  Government 
distinguished  for  the  stability  of  its  position  and 
the  continuity  of  its  policy.  A  study  of  the  history 
of  the  last  century  leaves  the  reader  wondering 
that  the  South  American  Republics  should  have 
been  so  ready  to  declare  war  when  so  unprepared 
to  carry  it  on,  but  from  any  such  criticism  Chile 
is  exempt.  The  struggle  with  Peru  in  1879-82 
was  the  turning-point  of  her  existence  ;  she  fore- 
saw the  coming  storm,  girded  herself  to  meet  it, 
and  took  full  advantage  of  its  effect  on  her  adver- 
saries. 

The  nitrate  fields  have  strengthened  her  financial 
position  and  have  thus  enabled  her  to  find  money 
for  the  needs  of  the  people  while  reducing  taxes 
that  were  prejudicial  to  commerce.  At  the  same 
time  she  has  not  presumed  on  her  prowess  in  war 
to  bully  her  neighbours  ;  in  fact,  her  readiness  to 
enter  into  arbitration  treaties  earned  for  her  at 
the  celebration  of  the  centenary  of  her  Independ- 
ence an  encomium  from  Sir  Edward  Grey,  which 
sums  up  what  has  been  said  above.     He  remarked 


CHILE  193 

that  the  prosperity  of  Chile  had  been  one  of 
growing  trade.  In  the  last  twenty-five  years  her 
imports  had  more  than  doubled,  and  her  exports 
had  increased  over  60  per  cent.  The  development 
by  Chile  of  her  railways  and  ports  showed  how 
strong  was  her  desire  and  intention  to  be  in  the 
main  stream  of  world  communication  and  pro- 
gress, and  he  felt  sure  that  she  would  hold  an 
honourable  place  in  it. 

As  to  the  general  policy  of  Chile,  its  peaceful 
tendency  had  been  most  striking.  In  the  year 
1902  Great  Britain  had  the  honour,  by  the  award 
of  King  Edward,  of  taking  part  in  a  peaceful 
settlement  between  Chile  and  Argentina  of 
the  dispute  which  had  been  referred  to  arbitra- 
tion. Since  then  Chile  and  Argentina  together 
had  set  an  example  by  a  general  Arbitration 
Treaty,  and  various  frontier  disputes  between 
Chile  and  her  neighbours  had  been  settled  by 
agreement.  Nobody  for  a  moment  thought  that 
that  peaceful  policy  on  the  part  of  Chile — the 
settlement  of  these  disputes  by  agreement— had 
been  due  to  any  weakness  of  hers.  On  the  con- 
trary, she  had  not  only  a  mercantile  marine,  but 
a  navy  to  protect  it,  and  an  army  which  was 
recognized  as  capable  of  protecting  Chilian  in- 
terests. All  the  more  because  she  had  this  strength 
did  Great  Britain  recognize  and  congratulate  her 
on  the  peaceful  settlement  by  arbitration  of  diplo- 
matic disputes. 

It  is  only  possible  to  add  a  few  details  to  the 
o 


194  THE   TEN   REPUBLICS 

general  statements  made  by  Sir  Edward  Grey. 
In  the  matter  of  communications  a  glance  at  the 
map  suggests  that  a  narrow  country  with  so  long 
a  sea-board  will  regard  the  water  rather  than  the 
railway  as  her  carrying  agent.  Only  one  trunk 
line  is  practicable  in  this  ribbon-shaped  land,  and 
under  these  circumstances  the  construction  of  more 
than  3380  miles  of  railway  without  incurring 
any  debt  is  a  creditable  achievement.  Of  this 
amount  a  little  over  one-third  belongs  to  private 
companies  and  the  rest  to  the  State  ;  among  the 
former  are  included  the  lines  in  the  nitrate  region. 
At  the  beginning  of  this  year  there  were,  more- 
over, 1552  miles  under  construction. 

The  ^'longitudinal  railway"  from  Tacna  in  the 
north  to  Port  Montt  in  the  south  of  Chile  is 
rapidly  being  pushed  forward.  Its  total  length 
will  be  2198  miles.  It  will  be  in  close  communica- 
tion with  twenty-eight  transversal  railways,  and, 
having  regard  to  the  Government's  programme 
in  connection  with  the  laying  of  double  tracks  on 
some  sections  of  its  lines  and  proposals  for  electri- 
fication of  other  lines,  it  may  be  anticipated  that 
the  Chilian  Railway  system  will  be  one  of  the 
most  serviceable,  best  planned  and  constructed 
systems  of  South  America.  With  the  opening  of 
the  Transandine  Tunnel  there  began  a  new  era 
for  Chile.  The  long  sea  journey  is  no  longer 
necessary,  and  she  may  now  expect  the  immi- 
grants whom  the  Andes  have  hitherto  barred  out 
from  her  fertile  vallev.     Their  advent  will  be  an 


CHILE  195 

even  greater  boon  to  the  country  than  the  new 
outlet  to  the  Atlantic  provided  for  its  products. 

Still  for  many  years  to  come  a  large  section  of 
the  population  must  look  to  the  sea  to  supply  their 
needs.  There  are  some  fifty  ports  upon  the  coast, 
of  which  about  a  dozen  are  used  for  foreign  trade 
— Valparaiso,  Iquique,  Antofagasta,  Taltal,  Mejil- 
lones,  Caleta  Buena,  Talcahuano  and  Tocopilla 
being  the  most  important.  Unfortunately  some 
of  these  are  exposed  to  the  wind,  and  in  others 
difficulties  are  created  by  shifting  sand  bars.  The 
determination  of  the  Government  to  give  facilities 
to  shippers  may  be  inferred  from  a  recent  law 
which  authorizes  the  President  to  contract  a  loan 
of  more  than  four  millions  sterling  for  the  im- 
provement of  the  ports  of  Valparaiso  and  San 
Antonio.  The  former  is  the  chief  port  on  the 
West  Coast  of  South  America  as  terminus  of  the 
Trans-Andean  line  ;  it  is  an  important  railway 
centre,  and  it  possesses  numerous  industries  to 
give  employment  to  its  inhabitants,  who  number 
over  two  hundred  thousand. 

Of  the  exports  of  the  country  more  than  sixty 
per  cent,  consists  of  nitrate  of  soda,  copper  and 
wheat  being  next  on  the  list ;  the  chief  imports 
are,  on  the  one  hand,  machinery,  railway  material 
and  coal,  which  may  be  classed  together  as  being 
in  a  sense  raw  material,  and  cotton  and  woollen 
goods  on  the  other. 

A  comparison  of  Chile's  exterior  commerce  for 
the  last  two  years  shows  a  considerable  increase 


196  THE  TEN  REPUBLICS 

for  1910  in  both   branches.     The  official  figures 
are  : — 

1909.  191  o.  Increase. 

£  £  £ 

Export  .     22,982,243  24,662,038  1,679,795 

Import   .      19,656,207  22,311,427  2,655,220 

42,638,450  46,973,465  4,335,015 


It  also  shows  that  the  balance  of  trade  in  Chile's 
favour  was  reduced  from  ;6^3, 326,036  in  1909  to 
i^2, 350,61 1  in  1910,  and  from  the  following  table 
of  the  principal  items  of  importation  it  may  be 
seen  in  what  directions  the  imports  have  been  so 
appreciably  augmented  : — 


Coal,  petroleum,  and 

other   combustibles 
Textiles,    i.e.     straw, 

hemp,  and  jute 
Cotton 

Woollen  .  '  . 
Iron  and  steel  goods 
Machinery  and  tools  . 
Live   animals  (chiefly 

bulls)       .  .  .      1,351,336     1,130,926-220,410 

Food-stuffs  (sugar, 

rice,  coffee,  tea,  oil, 

mat6,  etc.)      .  .      1,564,647     1,752,267+187,620 

Imports  were  increased  from  the  United  States 
by  ;^767,i3i,  from  Germany  by  ;^749,878,  from 
Great  Britain  by  ^^505, 749, from  India  by  ;^30i,385, 


1909. 

1910,       Difference. 

£            £ 

3,404,945 

3,858,553  +  453,607 

688,963 
2,503,076 
1,086,812 
2,260,872 
2,110,340 

1,042,246  +  353,283 

2,967,335  +  464,259 
1,442,815  +  356,003 

2,515,631  +  254,759 
1,954,7^0-  155,640 

CHILE 


197 


from  France  by  ;^277,28o,  and  from  Peru,  Italy, 
and  Spain  to  a  lesser  extent.  Argentina  sent  less 
by  i;"234, 193,  and  Australia  less  by  ^97,280  than 
in  1909. 

Turning  now  to  the  exportation,  we  find  from 
the  excellently  compiled  official  statistics  the 
following  differences  in  the  value  of  the  principal 
exports  for  the  two  years  :  — 


1909. 

1910. 

Difference. 

£ 

£ 

£ 

Salitre  (nitrate  of 

soda) 

.     15,815,263 

17,675,006  + 

',859,743 

Bar  copper  . 

957.179 

898,692  - 

58,487 

Iodine 

417,889 

512,387  + 

94,498 

Copper  ore  . 

520,720 

480,747- 

39.973 

Wheat 

1,065,247 

504,401  - 

560,846 

Oats    . 

275,783 

252,040- 

23.743 

Barley 

330.521 

161,661  - 

168,860 

Hides  . 

127,958 

246,954  + 

118,996 

Chinchilla     skins 
(71,963  skins) 

53.972 
(52,363  skin 

^J  86,399  + 

32,427 

Chile  exported  in  1910  to  the  United  States 
more  by  i^i, 036,076  than  in  1909,  and  amongst 
other  nations  whose  imports  of  Chilian  products 
increased  were  Spain  by  ^301,219,  Bolivia  by 
^203,137,  and  Cape  Colony  by  ^^141,830.  Great 
Britain  tooki^7o,504  less,  Germany  ;^i3i,8i6  and 
Holland  ^^186,416  less  than  in  1909. 

In  1909,  of  the  ^18,869,959  of  Chilian  im- 
ports Great  Britain  supplied  by  far  the  greater 
part   (^^6,368,549),    and    the    percentages    of   the 


198  THE   TEN   REPUBLICS 

trade  enjoyed  by  the  five  leading  countries  were  : 
England,  33*4;  Germany,  23*9;  United  States, 
io"o;  Argentina,  6*9;  and  France,  5*9.  Of  the 
principal  imports  :  in  textiles  nearly  one-half  came 
from  Great  Britain  ;  in  mineral  products  Germany 
had  a  slight  lead  over  Great  Britain  ;  in  coal,  oil, 
etc..  Great  Britain  stood  first  with  a  lead  of  about 
^300,000  worth  over  the  United  States.  With 
the  exception  of  small  quantities  from  Belgium 
and  France  practically  all  the  machinery  imported 
came  from  three  countries:  Germany,  ;^824,547  ; 
Great  Britain,  ;^795,564;  United  States,  ;^279,295. 
Nearly  two  -  thirds  of  the  animal  products, 
i^i, 277,360,  came  from  the  Argentine  Republic. 

The  exports  for  1909,  amounting  to  ;^22, 062,953^, 
were  divided  in  the  percentage  of  42*1,  22*3,  18*4, 
and  4*9  between  Great  Britain,  Germany,  United 
States  and  France  in  the  order  given.  Of  the 
exports  of  the  mineral  products  (which  amounted 
altogether  to  ^^17,389,992,  or  nearly  three-quarters 
of  the  entire  export  trade)  ;^6,468,36i  went  to  Great 
Britain,  ^^4, 230,805  to  Germany,  and  ^3,888,348 
to  the  United  States. 

The  national  revenue  is  derived  mainly  from  ex- 
port duties  on  nitrate,  amounting  annually  to  about 
five  millions  sterling,  receipts  from  railways, 
customs  duties,  and  the  alcohol  tax.  Import  duties 
are  imposed,  specific  and  ad  valorem^  the  per- 
centage chargeable  varying  with  the  class  of  goods. 
It  is  impossible  to  formulate  any  general  law  for 
the   classification    that   is   adopted,  but,    roughly 


CHILE  199 

speaking,  Chilian  industries  are  protected  by  an 
average  rate  of  25  per  cent.,  while,  in  accordance 
with  what  is  a  very  prevalent  custom  in  South 
America,  no  charge  is  made  upon  things  such  as 
railway  material  and  machinery,  which  are  deemed 
essential  to  the  development  of  the  country. 

The  credit  of  Chile  stands  high.  The  last  loan 
offered  in  London  this  year  was  subscribed  for 
fifteen  times  over.  In  only  one  point  does  Chile 
compare  unfavourably  with  her  neighbours,  and 
that  is  in  her  currency,  which  is  mostly  paper.^ 
Several  attempts  have  been  made  to  place  it 
upon  a  gold  basis,  but  they  have  ended  in  failure, 
partly  owing  to  financial  stringency,  and  partly 
to  the  disinclination  of  the  agricultural  and  land- 
owning classes  to  sacrifice  a  monetary  system 
which  permits  of  their  satisfying  those  whom  they 
employ  with  a  cheap  dollar,  and  partly  through 
the  bad  banking  laws.  While  the  Government 
of  Chile  has  done  everything  possible  to  convert 
this  paper  money,  it  has  not  yet  succeeded.  The 
Government  has  ^^9,000,000  of  gold  in  British 
and  German  banks,  and  $50,000,000  worth  of 
mortgage  bonds  as  a  fund  to  redeem  the  paper 
money  of  the  country,  and  in  time  it  is  hoped 
that  the  redemption  will  be  accomplished. 

From  what  has  been  said  about  the   revenue 

^  Chile's  monetary  unit,  nominally  the  gold  ^cso  of  i8 pence,  is 
in  reality  the  paper  peso  of  about  ii\d.  in  value,  hut  there  is  a 
gold  coinage  of  5,  10  and  20  pesos  in  existence,  though  practically 
7vithdraivn  from  circulation.  The  silver  peso  and  5,  10,  and 
20  centavos  pieces  are  also  seldom  used. 


200  THE   TEN   REPUBLICS 

derived  from  the  nitrate  industry  its  importance 
will  be  appreciated.  The  nitrate  fields,  which  are 
found  in  the  rainless  desert  in  the  north  of  Chile, 
extend  for  more  than  four  hundred  miles  parallel 
to  the  sea. 

''  The  region  presents  the  strange  contradiction 
of  furnishing  the  world's  fertilizer,  that  gives  life  to 
arid  lands  wherever  applied,  yet  yielding  no  kindly 
fruits  itself.  The  elixir  of  other  lands  which  lies 
within  its  strata  vouchsafes  no  sustenance  for  its 
own  soil  ;  no  living  thing  can  find  nourishment 
there.  The  nitrate  zone  is  one  of  the  barren  places 
of  the  earth.    But  the  climate  is  perfect." 

Chile  now  extracts  from  the  nitrate  district  about 
six  times  as  large  an  annual  output  as  it  yielded 
when  in  other  hands,  but  she  has  little  fear  that 
the  deposits  will  be  soon  exhausted,  as  estimates 
show  that  at  the  present  rate  of  production  they 
will  last  136  years.  By  1925  nitrate  will  have 
yielded  the  State  eighty  millions  sterling. 

The  Chilians  have  taken  all  possible  steps  to 
develop  the  nitrate  industry ;  new  beds  have  been 
discovered  in  the  provinces  of  Antofagasta  and 
Atacama,  and  the  supply  should  now  be  equal  to 
the  demand  for  many  years  to  come — the  more  so 
as  the  Government  is  fully  aware  of  the  issues  at 
stake,  and  may  be  trusted  to  prevent  the  dissipa- 
tion of  its  most  valuable  resources.  Indeed, 
special  laws  have  been  passed  for  the  protection  of 
this  seemingly  valueless  desert,  and  those  who 
wish  to  establish  themselves  upon  it  must  be  pro- 


CHILE  20I 

perly  accredited.  The  nitrate  industry  has  been 
developed  mainly  by  British  capital,  although  the 
Germans  and  the  Chilians  have  co-operated.  The 
nitrate  producers  have  formed  a  protective  Asso- 
ciation. This  Association  at  one  time  limited 
the  output  of  each  of  its  members  to  a  fixed  pro- 
portion, and  so  maintained  prices ;  possibly  it 
may  do  so  again,  but  at  present  it  is  mainly  con- 
cerned with  advertising  the  valuable  qualities  of 
its  products.  The  salt  is  used  not  only  in  agricul- 
ture, but  also  in  the  manufacture  of  explosives,  and 
among  the  by-products  of  the  industry  is  iodine. 

As  the  nitrate  fields  lie  at  a  considerable  eleva- 
tion, and  between  fifty  and  a  hundred  miles  inland, 
it  has  been  necessary  to  build  short  railways  to 
put  them  in  communication  with  the  sea.  These 
railways,  and  the  ports  which  have  been  built  on 
the  coast  to  transact  their  business,  may  be  re- 
garded as  part  of  the  plant  of  the  nitrate  in- 
dustry. 

Chile,  it  is  true,  produces  coal,  but  as  her  out- 
put is  taken  by  the  railways,  ports,  and  southern 
industries  in  the  neighbourhood  of  the  mines,  the 
nitrate  companies  usually  import  what  they  require 
from  England  and  Australia— the  more  so  as 
freight  charges  are  low,  since  the  ships  which  fetch 
the  nitrate  are  glad  of  a  cargo.  A  special  type  of 
business  is  thus  developed  in  the  northern  ports, 
of  which  the  best  known  are  Iquique  and  Antofa- 
gasta.  The  former  does  a  large  export  trade,  for, 
though  the  harbour  is  little  more  than  an   open 


202  THE   TEN   REPUBLICS 

roadstead  the  hills  on  the  coast  and  the  island  of 
Serrano  render  it  safe. 

Antofagasta  does  not  owe  its  prosperity  to  any 
one  business.  It  serves  a  nitrate  district ;  it  con- 
tains smelting  works  for  the  neighbouring  silver 
mines,  and  as  the  seaport  of  the  Oruro  railway  it 
handles  the  trade  of  south-west  Bolivia. 

From  the  point  of  view  of  those  occupied  in 
mining,  the  product  next  in  importance  to  nitrate 
of  soda  is  copper,  which  was  exported  to  the  value 
of  nearly  two  millions  sterling  in  1908.  At  one 
time,  indeed,  some  two-thirds  of  the  world's  out- 
put was  derived  from  Chile,  and  the  discovery  of 
a  mummy  almost  turned  into  copper  in  an  old 
mine  in  the  province  of  Antofagasta  points  to  the 
antiquity  of  the  industry.  Various  causes  have 
contributed  to  its  stationary  condition  of  recent 
years;  other  countries  have  largely  increased  their 
output ;  the  metal  has  fallen  in  price  ;  some  of  the 
richest  mines  have  been  worked  out ;  and  the 
labourers  have  been  attracted  elsewhere  as  the 
nitrate  business  has  developed.  Chile's  output  of 
copper  has  actually  remained  about  the  same, 
though  relatively  to  the  output  of  other  countries 
it  has  decreased.  Copper  is  found  in  the  provinces 
of  Santiago  and  Valparaiso,  but  most  of  the  mines 
are  situated  in  the  north,  which  also  supplies  a 
considerable  quantity  of  borate  of  lime. 

Coal,  on  the  other  hand,  is  a  product  of  Concep- 
cion  and  other  southern  districts.  Over  a  million 
tons  were  mined  last  year.     The  mineral  yielded 


CHILE  203 

is  a  lignite  somewhat  deficient  in  caloric  qualities 
and  thus  competing  at  some  disadvantage  with 
imported  coal.  The  country's  consumption  of  coal 
in  1910  was  two  and  a  half  million  tons,  of  which 
one  and  a  half  million  tons  were  imported. 

But  the  main  occupation  of  the  population  of 
Chile  is  agriculture  and  kindred  pursuits.  The 
sub-tropical  regions  have  a  light  rainfall,  a  genial 
summer,  and  facilities  for  irrigation,  which  make 
them  suitable  for  fruit  farms,  and,  further  south, 
wheat  is  grown  with  conspicuous  success.  Wheat, 
indeed,  still  ranks  among  the  exports,  and  in  pro- 
cess of  time,  when  North  America  comes  to  need 
all  the  cereals  it  produces,  Chile  may  find  a  large 
market  in  Europe  for  such  as  she  can  spare.  At 
one  time  she  sent  wheat  to  Argentina  and  as  far 
north  as  California,  but  her  methods  were  too 
primitive  for  her  to  hold  her  own  with  those 
countries  when  they  began  to  compete  with  her. 

A  large  and  growing  trade  is  also  done  in  wine, 
much  of  which  is  exported  to  Perii  and  Bolivia. 
The  vine — according  to  experts— requires  "a 
winter  sufficiently  cold  to  give  the  vegetation  a 
rest,  a  spring  sufficiently  early  and  mild  to  help 
along  the  budding  and  effervescence  of  the  plant, 
and  a  summer  sufficiently  long  and  warm  properly 
to  ripen  the  fruit."  All  these  advantages  are 
found  in  Chile,  which  looks  forward  in  the  future 
to  good  results  from  viticulture.  The  progress  of 
the  mining  interest  has  indirectly  benefited  the 
agriculturalists.      Dairy  farms  have  increased  with 


204  THE   TEN    REPUBLICS 

the  growing  demand  for  butter  and  cheese,  and 
the  fruit-growers  are  assured  of  a  larger  and  more 
constant  market.  Cattle  and  sheep  are  raised  for 
home  consumption,  but  it  is  unlikely  even  with 
increased  transportation  facilities  that  a  large 
export  trade  will  be  built  up  in  these  commodities 
in  the  teeth  of  Argentine  competition. 

The  manufactures  of  Chile  are  practically  con- 
fined to  those  for  which  she  herself  produces  the 
raw  materials.  With  the  assistance  of  a  high 
tariff  they  do  well.  In  the  cattle-raising  and 
forest  districts  of  the  south  it  has  paid  to  estab- 
lish tanning  industries,  and  they  in  their  turn 
have  fostered  the  production  of  boots  and  saddlery ; 
moreover,  considerable  capital  is  employed  in  the 
making  of  furniture,  barrels,  etc.  In  the  fruit- 
growing districts  are  found  factories  for  the  tin- 
ning and  preserving  of  their  produce,  while  in  the 
mining  region  of  the  north  some  attention  is 
given  to  the  manufacture  of  chemicals. 

In  the  main  the  characteristics  of  the  Chilian 
of  to-day  are  hard-headedness,  determination  and 
energy,  qualities  not  usually  regarded  as  inherent 
in  a  Latin  race  ;  and  having  in  mind  the  progress 
and  reforms  already  accomplished  by  virtue  of 
these  traits  and  the  elements  of  wealth  which  yet, 
lying  dormant  in  the  soil,  await  their  application, 
it  is  hazarding  nothing  to  prognosticate  for  Chile 
a  glorious  future,  and  that  not  too  remote. 


CHAPTER   IX 

COLOMBIA 

Strictly  speaking,  ^'Colombia"  should  be  the 
title  applied  to  the  whole  vast  continent  discovered 
by  Columbus.  On  his  final  voyage,  after  dis- 
covering Cape  Gracias  a  Dios  (''Thanks  be  to 
God")  on  September  14th,  1502,  he  sailed  along 
what  we  now  know  to  have  been  the  coast  of 
''Colombia"  proper,  but  made  no  attempt  at 
colonization.  The  King  of  Spain  granted  it  to 
the  explorer,  Alonso  de  Ojeda,  in  1506,  but  the  real 
importance  of  the  country  was  not  revealed  until 
the  interior — Bogota — was  discovered  (1536-7)  by 
Jimenez  de  Quesada,  a  far  greater  man  than 
Ojeda,  whose  discoveries  and  exploits  rank  with 
those  of  Cortes  in  Mexico  and  of  Pizarro  in  Peru, 
and  in  memory  of  whose  Spanish  birthplace 
(Granada,  Andalusia,  Spain)  the  name  of  New 
Granada  was  given  to  the  territory  that  we  now 
know  as  Colombia.  The  country  remained  under 
Spanish  rule  until,  three  centuries  afterwards,  the 
citizens  of  Bogota  rose  against  their  Spanish 
masters  and  deposed  the  viceroy,  Borbon.  It  was 
then  that  the  celebrated  Simon  Bolivar  came  to 
the   front,    and    took   the   lead    in   the   long   and 

205 


2o6  THE   TEN   REPUBLICS 

chequered  War  of  Independence  that  culminated 
in  the  utter  overthrow  of  the  Spanish  dominion 
over  New  Granada,  which  included  within  its  limits 
Venezuela  and  Ecuador,  in  the  great  battle  of 
Boyaca  in  1819,  and  in  the  establishment  of  a 
union  between  the  three  divisions  of  the  country, 
with  Bolivar  as  first  President  of  *' Greater 
Colombia." 

Bolivar's  work  threatened  to  be  short-lived, 
for  after  his  death  in  1830  both  Venezuela  and 
Ecuador  (who  had  joined  the  union  in  1829) 
seceded,  and  the  country,  after  several  changes 
of  title,  became  finally  known  as  The  Republic 
of  Colombia  by  a  constitution  adopted  in  1886 
on  the  lines  of  a  republican  unitary  form  of 
Government.  The  final  secession  of  Panama  in 
1903  involved  a  loss  not  only  of  territory  but  of 
pecuniary  advantages,  from  the  concessions  in 
connection  with  the  Canal  Zone,  that  Colombia 
could  ill  afford. 

Situated  in  the  extreme  north-west  corner  of 
South  America,  and  with  outlets  both  to  the 
Pacific  Ocean  and  the  Caribbean  Sea,  Colombia 
embraces  an  extent  of  438,436  square  miles  and 
has  a  population  of  about  4,320,000.  But  whereas 
this  area  is  equal  to  about  three  and  a  half  times 
the  area  of  the  United  Kingdom,  its  population 
works  out  at  only  about  ten  inhabitants  per 
square  mile,  as  compared  with  three  hundred  and 
forty  per  square  mile  in  the  United  Kingdom  or 
thirty  pg*  square  mile  in   the    United   States  of 


COLOMBIA 


207 


America.  The  national  demand  is,  therefore, 
for  more  people,  as  it  is  also,  in  varying  degrees, 
with    all    the    Latin-American    Republics.       No 


C  A  R  I  B  B  E\A    N 


doubt  the  increased  trade  facilities  that  will  be 
afforded  Colombia  by  the  opening  of  the  Panama 
Canal  will  help  to  attract  the  immigrants  she  so 
urgently  requires. 

Colombia  has  a  great  many  rivers  which  form 


2o8  THE   TEN    REPUBLICS 

part  of  the  vast  watersheds  of  the  Orinoco  and 
of  the  Amazon.  Both  the  Orinoco  and  the 
Amazon  flow  partly  through  Colombian  lands, 
but  they  really  belong,  the  one  to  Venezuela  and 
the  other  to  Brazil;  however,  the  number  of  rivers 
of  Colombia  emptying  into  the  Orinoco  is  quite 
large,  and  some  of  them  are  mighty  streams, 
such  as  the  Meta,  the  Vichada  and  the  Arauca, 
and  it  is  no  exaggeration  to  say  that  probably 
there  are  more  than  thirty  or  forty  of  these  large 
rivers,  and  possibly  a  hundred  small  rivers, 
flowing  from  Colombian  plains  into  the  Orinoco. 
The  same  may  be  said  with  regard  to  the  Amazon. 
In  short,  Colombia  has  a  very  important  share  in 
two  of  the  greatest  watersheds  of  the  world. 

The  principal  Colombian  rivers  are  the  Atrato, 
which  empties  into  the  Gulf  of  Uraba,  and  the 
Magdalena,  which  flows  into  the  Caribbean  Sea, 
250  or  300  miles  to  the  east  of  the  Atrato.  In 
connection  with  the  former  it  may  be  mentioned 
that  owing  to  the  proximity  of  its  mouth  to 
the  Isthmus  of  Panama  competent  engineers 
claim  that  it  would  serve  as  a  base  for  an  inter- 
oceanic  canal  between  the  Atrato  and  the  Pacific, 
as  there  is  a  small  river,  not  far  from  the  Atrato, 
that  empties  into  the  Pacific. 

In    consequence   of    the    great    differences    in 

altitude  that  exist,   the  climates  of  the   different 

parts  vary  considerably  from  tropical  to  temperate, 

>"     and  there  is  a  consequent  variety  of  agricultural 

and   forest   products.     In    the   hot   lands,   at   the 


COLOMBIA  209 

level  of  the  sea,  or  up  to  2000  feet  or  so,  all  the 
products  of  the  Tropical  Zone  are  obtainable. 
Some  of  them,  like  cacao  and  rubber,  require 
special  temperature  and  moisture,  so  that  other 
conditions  than  merely  that  of  altitude  are  essen- 
tial to  their  cultivation.  Coffee  grows  at  from 
3000  to  4500  feet.  It  may  be  produced  at  other 
altitudes,  but  not  profitably.  The  coffee  crop 
of  the  Republic  yields  annually  about  600,000 
bags,  mainly  for  European  and  North  American 
markets.  In  the  uplands  and  altitudes  beyond 
7000  feet  European  fruits  and  cereals  are  pro- 
duced ;  and  with  an  efficient  railway  system 
Colombia  could  not  only  supply  enough  wheat 
and  barley  for  her  own  consumption,  but  she 
could  also  export  them.  The  cultivation  of 
bananas  has  been  greatly  stimulated  by  Govern- 
ment measures  with  regard  to  concessions  of 
lands  for  this  purpose  as  well  as  to  the  develop- 
ment of  existing  lands  by  extensive  irrigation. 

Bananas  can  be  grown  all  over  the  lowlands ; 
they  are  only  a  valuable  article  of  commerce 
when  near  the  coast.  The  commercial  import- 
ance of  Santa  Marta,  on  the  Caribbean  coast, 
and  north  of  the  great  coastal  banana-raising 
plain,  depends  almost  entirely  upon  its  large 
and  increasing  shipments  of  this  fruit  to  the 
United  States.  The  Santa  Marta  Railway,  which 
runs  through  this  region,  is  responsible  for  most 
of  the  transportation,  having  carried  in  one  year 
50,000  tons  of  this  fruit.  Round  the  basins  of  the 
p 


2IO  THE   TEN   REPUBLICS 

rivers  Magdalena  (a  stream  which  is  navigable  for 
nine  hundred  miles  of  its  course)  and  Sinu  there 
is  another  very  fertile  region  where  rubber  and 
cacao  as  well  as  bananas  can  easily  be  grown, 
while  coal  and  petroleum  are  only  awaiting 
capital  for  development  in  the  same  district. 
These  districts  are,  too,  the  great  cattle-rearing 
districts,  though  the  entire  country  is  suitable 
for  stock-raising.  The  eastern  plains  of  the 
Meta,  the  Orinoco,  and  other  rivers  towards  the 
east  which  are  much  larger  in  extent,  are  as 
well  suited  to  cattle-raising  as  the  plains  of  the 
Magdalena.  Rubber  also  is  on  the  upgrade, 
and  the  production  of  tobacco,  much  of  which 
now  goes  to  Germany,  can  undoubtedly  be 
greatly  increased. 

But  Colombia's  chief  source  of  wealth  should 
be  in  her  minerals  and  precious  stones,  and  it 
seems  extraordinary  that  they  have  hitherto  been 
so  little  exploited.  Up  to  1845  or  1846,  that  is 
to  say,  before  the  discoveries  in  California, 
Colombia  was  considered  one  of  the  largest 
gold-producing  countries  in  the  world.  It  stands 
on  record  that  during  Spanish  rule  the  taxes  on 
gold  showed  that  up  to  18 10  the  production  of 
gold  and  silver,  principally  gold,  in  Colombia  had 
amounted  to  more  than  a  thousand  million  dollars, 
and  it  should  be  borne  in  mind  that  many  evasions 
of  the  tax,  such  as  clandestine  shipments,  must 
have  taken  place.  Emeralds,  platinum,  coal, 
copper    and    iron    are    known    to   exist    in    large 


COLOMBIA  211 

quantities,  but  for  some  reason  the  capital  neces- 
sary for  their  working  has  not  been  forthcoming, 
though  as  regards  the  influx  of  capital  the  outlook 
is  now  much  more  promising. 

The  great  gold-bearing  districts  lie  in  the 
Choco  region  and  in  Antioquia,  and  between  the 
Cauca  and  the  Magdalena.  The  mines  of  Mar- 
moto,  Riosucio,  and  the  Choco  district  are  said  to 
have  deposits  equal  to  those  of  the  Transvaal, 
whilst  new  discoveries  have  been  made  on  the 
Magdalena  river,  and  gold  nuggets  are  found  in 
the  beds  of  all  the  rivers  flowing  to  the  Pacific. 

The  famous  emerald  mines  are  situated  at  Muzo, 
seventy-five  miles  from  Bogota,  and  have  an  extent 
of  140,000  acres.  The  scarcity  of  this  precious 
stone  in  other  parts  of  the  world  tends  naturally 
to  enhance  the  value  of  these  mines  in  Colombia. 

Copper  ore  is  known  to  be  abundant,  and  it  is 
estimated  that  the  output  of  platinum  would  rival 
that  of  Russia. 

Coal  deposits  are  very  large  ;  they  extend  from 
the  gulf  of  Maracaibo,  on  the  Venezuelan  coast, 
to  the  Pacific,  where  out-croppings  are  found 
not  far  north  of  Buenaventura  ;  furthermore,  the 
mountains  near  Bogota,  covering  an  area  of  at 
least  two  or  three  hundred  miles,  are  rich  in  coal, 
as  well  as  salt. 

Petroleum  and  rock-salt  deposits  are  very  con- 
siderable. The  Government  holds  a  monopoly 
of  salt-mining,  the  net  revenues  in  1908  to  the 
Government    from    the     Zipaquira    mines,     near 


212  THE   TEN    REPUBLICS 

Bogota,  being  between  li  to  2  millions  sterling. 
In  fact,  rock-salt  mines  have  hitherto  formed  one 
of  the  greatest  sources  of  the  wealth  of  the  country. 
Iron  and  copper  ores  are  abundant,  but  remain 
unworked  to  a  very  great  extent  owing  to  lack  of 
transportation  facilities,  a  defect  that  has  retarded 
the  development  of  the  whole  country. 

Government  concessions  have  been  granted  with 
regard  to  the  free  importation  of  machinery  and 
implements  necessary  to  certain  manufacturing 
industries,  and  it  may  be  said  that  all  manufac- 
turing industries  have  benefited  by  the  Govern- 
ment's consistent  policy  towards  their  establish- 
ment and  development.  The  textile,  hat,  sugar- 
cane and  flour  milling  industries  are  the  most 
important,  though  the  latter's  output  has  not 
hitherto  been  sufficient  for  the  home  market. 

After  exhibiting  in  1908  an  advance  of  half  a 
million  sterling  on  its  trade  of  1907,  Colombia's 
foreign  commerce  in  1909  increased  to  a  total 
value  of  ;^5, 2 14,878,  represented  by  ;^2,ii2,209  of 
imports  and  ^^"3, 102,669  of  exports,  giving  the 
encouraging  trade-balance  in  the  Republic's  favour 
of  nearly  i^i,ooo,ooo.  The  flourishing  ports  of 
Barranquilla,  Cartagena  and  Buenaventura  were 
a  long  way  ahead  in  totals  of  foreign  trade,  though 
as  regards  export  trade  alone  Santa  Marta,  Tumaco 
and  Cucuta  competed  favourably  with  Buenaven- 
tura. While  the  exports  improved  by  some 
i^40,ooo  as  compared  with  the  1908  output,  the 
imports    decreased    by    no    less    than    ;^6oo,ooo. 


COLOMBIA  213 

The  principal  exports  from  the  United  States  of 
America  were  iron  and  steel  manufactures  (chiefly 
machinery),  cotton  goods,  bread  stuff,  lard,  medi- 
cine, and  oils.  Colombia  sent,  in  return,  coffee, 
hides  and  skins,  rubber,  bananas,  vegetable  ivory, 
etc.  Great  Britain  is,  however,  Colombia's  princi- 
pal customer.  Her  large  investments  in  railway 
enterprise  have  secured  her  the  supply  of  much  of 
the  railway  material,  though  on  the  lines  controlled 
by  the  Government  preference  is  shown  for  Ameri- 
can locomotives  and  equipment.  A  great  deal  of 
the  cotton-goods  trade  is  held  by  Manchester, 
where  previously  the  United  States  had  been 
supreme.  Germany's  interest  in  Colombian  trade 
is  to  be  noted  ;  her  permanent  stake  in  the  country 
(as  in  any  of  the  South  American  countries)  is 
negligible  compared  with  that  of  Great  Britain, 
but  she  offers  a  considerable  market  for  Colombian 
tobacco,  hides,  dye-woods,  and  a  number  of  mis- 
cellaneous products.  France,  too,  has  trade 
amounting  to  a  considerable  sum  annually  with 
Colombia,  supplying  chiefly  wines,  liquors,  olive 
oils,  etc. 

With  regard  to  the  importation  of  machinery, 
that  which  is  considered  necessary  to  the  de- 
velopment of  the  country's  resources  is  in  many 
cases  admitted  duty  free.  These  are  not  special 
concessions,  but  benefit  every  importer.  The 
supply  of  mining  machinery  is  shared  by  Great 
Britain  and  the  United  States,  being  distributed 
mainly  according  to  the  nationality  of  the  owners 


214  THE   TEN   REPUBLICS 

of  the  mines.  American  manufacturers  are  obtain- 
ing a  hold  upon  the  market  for  agricultural  and 
milling  machinery,  but  in  the  sugar  and  coffee 
industries  European  machinery  is  most  generally 
used,  though  American  competition  in  this  direc- 
tion may  be  anticipated. 

In  1909-10  Colombia  made  satisfactory  progress, 
but  development  is  far  too  slow.  In  July  of  the 
first-named  year  the  President  gave  Congress  a 
clear  exposition  of  the  financial  position  of  the 
Republic,  and  at  the  same  time  introduced  sweep- 
ing economic  reforms.  Trade  monopolies  having 
been  abolished  by  a  decree  of  April,  1909,  great 
relief  was  thereby  afforded  to  commerce,  though 
the  State  revenue  failed  to  benefit.  The  President 
urged  upon  Congress  the  conclusion  of  reciprocity, 
boundary  and  arbitration  treaties  with  Venezuela 
and  Peru.  Similar  treaties  had,  in  1908,  been 
effected  with  Great  Britain,  France  and  Brazil. 
Foreign  capital  is  essential  to  this  otherwise 
thriving  community,  and  the  outlook  is  very 
bright  now  that  the  era  of  war  and  internal  dis- 
sensions appears  to  have  given  place  to  peace  and 
goodwill  both  at  home  and  with  all  nations. 

The  great  obstacle  to  Colombia's  development 
has  been  the  difficulty  of  internal  communication. 
The  railway  system  is  quite  inadequate,  and  the 
resources  and  finances  of  the  country  have  not 
permitted,  until  recently,  of  the  introduction  of  any 
systematic  policy  into  railroad  construction.  In 
1909  only  510  miles  of  railway  line  were  in  work- 


COLOMBIA 


215 


ing  order,  none  of  the  stretches  exceeding  ahundred 
miles  in  length,  with  perhaps  a  further  hundred 
in  course  of  construction.  Of  the  existing  lines, 
60  per  cent,  are  worked  by  British  companies,  the 
remainder  being  owned  either  by  the  State  or  by 
native  concerns.  Unfortunately,  no  uniformity 
of  gauge  has  been  observed,  both  the  yard  and 
metric  gauge  having  been  used  indiscriminately. 
The  short  line  on  the  Sabana,  connecting  Bogota 
with  Facatativa,  is  the  most  important  and  the 
most  profitable.  Bogota  lies  in  a  somewhat 
isolated  position,  and  is  difficult  of  access,  but 
in  1909  a  freight  and  passenger  service  was  estab- 
lished between  the  city  and  Girardot,  situated  a 
little  to  the  west,  which  has  facilitated  the  commu- 
nication of  Bogota  with  the  outside  world.  Con- 
gress has  recently  authorized  a  project  for  the 
cutting  through  of  the  bar  at  the  entrance  to  the 
Magdalena,  which  will  throw  open  that  river  to 
ocean  traffic,  and  it  is  hoped  that  this  will  stimu- 
late railway  enterprise. 

The  fact,  too,  that  concessions  covering  1570 
miles  have  recently  been  granted  by  the  Govern- 
ment points  to  the  attention  that  is  now  beginning 
to  be  paid  to  the  development  and  extension  of 
means  of  communication,  while  the  modifications 
that  have  been  made  in  the  customs  tariff  on 
materials  for  railroad  construction  are  proof  of 
Colombia's  recognition  of  what  may  be  called  her 
chief  need. 

Bogota,  the  capital  of  Colombia,  is  a  mountain 


2i6  THE   TEN    REPUBLICS 

city,  standing  8616  feet  above  sea-level  on  the 
high  inland  plain  of  Bogota  that  lies,  to  quote  a 
correspondent's  description,  "like  a  huge,  high- 
rimmed  and  flat-bottomed  bowl "  about  midway 
between  where  the  Eastern  Cordillera  diverges 
from  the  north-west  and  middle  ranges  of  the 
Andes  and  where  it  enters  Venezuela.  Owing  to 
the  height  at  which  the  city  is  situated,  its  climate 
is  cool,  the  mean  annual  temperature  being  about 
60  degrees  Fahrenheit.  It  has  a  population  of 
125,000.  Bogota  is  a  mixture  of  the  very  old 
and  the  very  new.  Among  its  many  interesting 
buildings  are  the  Astronomical  Observatory — 
after  that  at  Quito  the  highest  in  the  world  — and 
the  School  of  Philosophy  and  Letters,  dating 
from  the  Spanish  Conquest  in  1553,  and  proudly 
described  by  the  Bogotanos  as  ''Ha  gloria  de  la 
patriay  "Bogota  to-day  is  without  doubt," 
writes  Mr.  Cunninghame  Graham,  "the  greatest 
literary  centre  south  of  Panama."  From  the 
church  of  Guadalupe  across  the  Savannah  of 
Bogota,  a  fertile  plain  of  330  square  miles,  one 
of  the  most  exquisite  views  in  the  world  is  to 
be  obtained,  which  calls  to  mind  a  description  of 
the  Colombian  capital  as  "the  Athens  of  South 
America." 

After  Bogotd,  the  largest  cities  are  Medellin 
with  50,000  inhabitants,  Barranquilla,  40,000, 
Bucaramanga,  30,000,  and  Cartagena,   27,000. 

Education  under  Spanish  rule  was  largely  in 
the  hands  of  the  Roman  Catholic  Church,  which 


COLOMBIA  217 

seems  to  have  done  its  work  well  in  New  Granada, 
where  at  one  time  there  were  twenty-three  colleges. 
Here,  too,  were  erected  the  first  observatory  and 
the  first  public  library  of  the  New  World.  The 
Republican  Government  is  now  continuing  the 
work  of  the  Church.  There  is  a  Department  of 
Public  Instruction,  and  in  1909  statistics  show 
that  235,000  pupils  were  being  educated  at  nearly 
3000  schools.  Industrial  night  schools  have  been 
established  in  the  larger  towns. 

To  encourage  and  improve  national  education 
special  officials  have  been  appointed  to  study  the 
systems  of  other  countries.  By  a  recent  decree 
additional  normal  schools  for  males  have  been 
established  at  Medellin,  Manizales  and  Ibagiie, 
and  for  females  at  San  Gil  and  Neiva.  In  all 
national  and  departmental  schools  a  course  of  six 
years'  study  must  be  completed  before  the  degree 
of  Doctor  of  Medicine  or  Surgery  can  be  obtained, 
but  doctors,  dentists  and  surgeons  holding  degrees 
from  foreign  faculties  are  free  to  practise  their 
professions  without  any  examination,  whilst  foreign 
practitioners  holding  no  degree  may  submit  them- 
selves for  examination  before  the  Faculty  of 
Medicine  at  the  University  of  Bogota. 

As  with  most  of  the  South  American  Republics, 
Colombia  is  administered  by  a  National  Congress 
composed  of  a  Senate  and  a  House  of  Representa- 
tives, the  former  comprising  three  members  for 
each  department  and  the  latter  one  representative 
for  every  50,000  inhabitants.     The  Senators  are 


2i8  THE   TEN   REPUBLICS 

elected  indirectly  for  a  term  of  four  years,  and  the 
other  Chamber  by  the  popular  vote  for  a  similar 
period.  Congress  elects  the  President,  who  holds 
office  for  four  years  at  a  salary  of  ;^2400  per 
annum,  the  six  members  of  his  Cabinet  receiving 
salaries  of  ;^i200  each. 

Military  service  is  compulsory,  and  while  there 
is  a  standing  army  of  only  6000  men,  there  is  an 
estimated  war-footing  of  120,000.  Last  year  the 
President  invited  a  War  Commission  from  Chile 
to  meet  at  Bogota  and  discuss  the  questions  of 
establishing  military  schools  and  placing  the 
Colombian  army  on  an  improved  basis. 


CHAPTER   X 

ECUADOR 

Early  history  shows  Ecuador  to  have  been  the 
kingdom  of  the  Caras,  a  Quechuan  race  which 
could  boast  an  advanced  civilization  whereof 
some  few  traces  remain  to  this  day.  The  Caran 
dynasty  seems  to  have  endured  for  more  than 
four  hundred  years,  until  the  fifteenth  king, 
defending  his  country  against  the  invading  Inca 
Huayna  Capac,  fell  in  battle,  1487.  The  region 
of  Ecuador  then  became  a  separate  Inca  posses- 
sion, ruled,  upon  the  death  of  Huayna  Capac,  by 
his  son,  Atahuallpa,  between  whom  and  his  half- 
brother,  Huascar,  Emperor  of  Cuzco  (Peru),  a 
war  broke  out  in  which  the  former  was  success- 
ful. But  the  fruits  of  victory  were  withheld  from 
Atahuallpa,  for  in  1532,  almost  immediately  after 
his  defeat  of  Huascar,  he  was  taken  prisoner  by  the 
marauding  Pizarro  and  subsequently  put  to  death. 
Spanish  dominion  commenced  with  the  found- 
ing, in  1534,  of  Quito,  the  present  capital,  where- 
after, for  nearly  three  hundred  years,  Ecuador  was 
administered,  first  as  the  province  of  Quito  by 
Pizarro's  brother,  Gonzalo,  and,  after  his  execu- 
tion, as  a  Presidency  by  the  Viceroys  of  Peru,  in 
much  the  same  oppressive  fashion  as  the  other 
Spanish  colonies,  and,  in  1809,  with  the  same  result. 

219 


220  THE    TEN    REPUBLICS 

The  first  revolutionary  movements  were  unsuccess- 
ful, but  on  May  24th,  1822,  General  Sucre  won 
a  decisive  victory  over  the  Royal  forces  at 
Pichincha,  and  a  few  days  afterwards  Ecuador  was 
declared  part  of  the  Republic  of  Colombia.  In 
1835,  however,  she  seceded  and  assumed  her  present 
position  as  an  independent  sovereign  nation. 

The  political  history  of  the  Republic  of  Ecuador 
is  largely  a  record  of  unscrupulous  or  incompe- 
tent government  relieved  by  periods  of  honest 
and  occasionally  capable  administration,  changes 
in  the  Presidency  being  almost  invariably  effected 
until  1890  by  plots  and  revolutions.  In  1875 
Garcia  Moreno,  a  priest-ruled  but  otherwise  ex- 
cellent President,  was  assassinated  in  Quito,  and 
it  is  probable  that  by  his  death  the  country 
suffered  a  severe  set-back.  But  in  1896,  anp 
again  in  1907,  General  Eloy  Alfaro,  a  wise  and 
energetic  statesman,  was  elected  to  the  Presi- 
dency, and  his  administration  has  been  signally 
successful  in  many  directions. 

The  name  of  Ecuador  is  significant  of  its  geo- 
graphical position,  for  the  Equator  traverses  its 
northern  provinces  only  a  few  miles  above  its 
capital  city.  The  country  is  bounded  on  the 
west  by  the  Pacific  Ocean,  on  the  north  by 
Colombia,  on  the  east  by  Brazil,  and  on  the  south 
by  Peru,  but  its  precise  southern  limits  cannot  be 
defined  for  the  reason  that  a  boundary  dispute 
with  the  last-named  nation,  involving  an  enormous 
tract  of  territory,  is  still  pending. 


ECUADOR 


Physiographically,   Ecuador  partakes  of  many 
of    the    attributes    of    other    Andean    Republics, 


having,  on  the  west,  a  strip  of  low-lying  coast 
backed  by  a  twin  range  of  lofty  mountains  which 
enclose  a  high   plateau  crossed  at  fairly  regular 


222  THE   TEN   REPUBLICS 

intervals  by  niidos  or  knots  of  peaks.  These 
parallel  chains  have  been  called  "an  avenue  of 
volcanoes,"  for  each  contains  at  lea&t  ten  peaks 
of  volcanic  origin,  two  of  which,  Cotopaxi  (19,600 
feet)  and  Sangay  (17,464  feet),  are  in  a  constant 
state  of  activity.  Chimborazo,  20,500  feet,  the 
most  northerly  summit  of  Ecuador,  is  not  con- 
sidered to  belong  to  the  Andes  proper.  In  the 
central  district  of  the  country,  between  the  ramifi- 
cations of  the  eastern  range,  are  hot  lowlands 
furrowed  by  the  valleys  of  small  rivers,  and  the 
eastern  section  is  occupied  by  plains  thickly 
covered  with  virgin  forests,  interspersed  with 
grass  lands  and  low  hills,  all  considerably  above 
the  level  of  the  sea.  The  interesting  Galapagos 
Islands  in  the  Pacific,  the  nearest  of  which  lies 
some  140  miles  from  the  coast,  belong  politically 
to  Ecuador. 

The  area  of  the  country  is  officially  estimated 
at  276,000  square  miles,  including  the  Galapagos 
Islands,  which  together  would  cover  rather  over 
5400  square  miles.  These  fifteen  small  units  of 
Equatorian  maritime  territory — something  of  a 
white  elephant  to  their  political  owners — occupy 
a  strategical  position  commanding  much  of  the 
west  coast  and  are  coveted  by  more  than  one  great 
Power.  A  recent  offer  from  the  United  States  to 
lease  them  for  99  years  provoked,  when  submitted 
to  the  people,  an  angry  popular  demonstration. 
Then  there  is  the  territory  in  dispute  with  Peru, 
whose   exact   extent    is    unknown.      It    probably 


ECUADOR  223 

exceeds  150,000  square  miles  of  rich  rubber  and 
forest  lands,  comprised  within  the  rough  triangle 
formed  by  theriversYapura and  Maraiion (Amazon) 
from  their  confluence  to  their  respective  head- 
waters. This  tract  has  been  in  dispute  since  182 1, 
when  Ecuador  formed  part  of  the  Republic  of 
Colombia,  and  at  present  there  seems  to  be  little 
prospect  of  an  immediate  amicable  settlement  of 
the  question. 

For  administrative  purposes  Ecuador  is  divided 
into  sixteen  provinces  and  a  territory  (the  Gala- 
pagos Islands).  The  provinces  are,  in  geographical 
order  from  north  to  south  :  Esmeraldas,  Carchi, 
Imbabura,  Manabi,  Pichincha,  Le6n,Tunguragua, 
Rios,  Bolivar,  Azuay,  Loja,  El  Oro,  Caiiar,  Guayas, 
Chimborazo,  and  Oriente  (the  great  eastern  pro- 
vince, forming  part  of  the  disputed  territory)  ;  they 
are  subdivided  into  cantons,  and  these  into  parishes. 

The  constitution  of  Ecuador  is  that  of  a  cen- 
tralized Republic,  power  being  distributed  among 
the  independent  legislative,  executive  and  judi- 
ciary branches.  The  President  is  elected  by 
direct  vote  for  a  term  of  four  years  with  the  usual 
proviso  as  to  re-election,  and  receives  a  salary  of 
;6^2400.  The  National  Congress  consists  of  two 
Houses,  the  Senate  and  the  Chamber  of  Deputies, 
the  former  composed  of  thirty-two  and  the  latter 
of  forty-two  members,  both  Houses  being  elected 
by  direct  vote,  which  may  be  exercised  by  all  male 
citizens  over  eighteen  years  of  age  who  can  read 
and  write.     Each  province  is  represented  by  two 


224  THE   TEN   REPUBLICS 

senators,  and  there  is  one  diputado  to  every 
30,000  citizens.  The  President  appoints  a  cabinet 
of  five  ministers.  There  is  also  a  Council  of 
State  composed  of  the  five  Cabinet  Ministers  and 
of  seven  councillors  elected  by  Congress.  Quito, 
the  capital  city,  is  the  seat  of  the  Supreme  Court, 
and  judges  and  magistrates  are  elected  by  Con- 
gress for  a  term  of  six  years.  The  provinces  are 
administered  by  governors  and  the  cantons  by 
magistrates  appointed  by  and  responsible  to  the 
President,  and  the  parishes  elect  their  own  council- 
lors by  direct  vote. 

The  natural  resources  of  Ecuador  cannot  be 
gauged  even  approximately,  but  there  is  no  reason 
to  believe  that  they  are  greatly  inferior  to  those  of 
Peru  or  Bolivia.  There  are  gold-washings  and  gold 
mines  in  the  Guayaquil  and  Esmeraldas  districts, 
though  the  emeralds  which  gave  the  latter  pro- 
vince its  name  are  now  seldom  found.  In  1905 
one  mine  in  Esmeraldas  produced  gold  to  the 
value  of  over  ;^i8,ooo,  though  in  1908  this  was 
reduced  to  little  over  ;^iooo.  From  the  port  of 
Guayaquil,  however,  gold  was  exported  in  the  latter 
year  to  the  value  of  nearly  ^37,500.  It  is  practi- 
cally certain  that  the  Equatorian  Andes  are  rich 
in  gold  and  silver,  and  copper,  zinc,  iron,  silver 
and  platinum  also  exist,  but  the  mining  industry 
is  very  little  developed.  Coal  of  a  lignite  quality 
occurs  in  several  districts,  but  it  is  to  be  feared 
that  it  would  not  pay  to  mine  it.  Petroleum  is 
also  found  and  is  used  in  a  crude  state  for  fuel. 


ECUADOR  225 

Agriculture  in  general,  though  the  chief  industry, 
suffers  like  the  mining  industry  from  lack  of 
machinery,  labour,  capital,  and  means  of  trans- 
port. Cocoa  is  by  far  the  most  important  product 
of  the  country,  and  for  this  the  soil  of  the  valleys 
is  particularly  suitable.  Tagua^  or  vegetable  ivory 
nuts,  used  in  France  and  Germany  for  the  manu- 
facture of  buttons,  is  Ecuador's  next  most  valuable 
product,  followed  by  coffee  and  rubber.  Sugar 
cane  is  cultivated  and  a  little  sugar  is  exported  ; 
rice  is  grown,  though  not  in  sufficient  quantities 
for  home  needs,  and  the  same  may  be  said  of 
wheat.  Fruits,  principally  bananas,  are  exported 
to  some  extent,  and  the  export  of  hides  is  on  the 
increase.  A  product  of  some  importance  is  the 
fine  straw  from  which  are  woven  what  are  known 
in  England  as  Panama  hats,  but  which  were 
originally  made  in  Manabi.  This  straw  is  the 
raw  material  of  an  industry  flourishing  at  present, 
but  dependent  to  a  great  extent  on  the  caprice  of 
fashion. 

Guayaquil,  the  busy  chief  port  of  Ecuador, 
through  which  passes  ninety  per  cent,  of  the  im- 
ports and  nearly  eighty  per  cent,  of  the  exports  of 
the  country,  is  situated  some  forty  miles  up  the 
Guayas,  the  largest  river  on  the  west  coast.  It 
has  an  urban  population  of  120,000  inhabitants. 

Quito,  the  capital,  is  connected  by  rail  with 
Guayaquil,  and  stands  at  a  height  of  9340  feet 
above  sea-level  in  the  midst  of  a  fertile  and  tem- 
perate   plateau.     It   claims   to   have    100,000   in- 

Q 


226  THE   TEN   REPUBLICS 

habitants,  possesses  several  fine  churches,  and  is 
one  of  the  oldest  and  most  interesting  cities  in 
South  America. 

Nearly  all  the  important  cities  of  Ecuador  are 
situated  on  the  Andean  tableland,  at  an  average 
height  of  8600  feet,  and  if  their  appearance  is  poor 
and  unattractive  the  blame  must  be  laid  upon  the 
insecurity  of  their  sites  in  a  region  so  exposed  to 
earthquakes  and  landslips.  Riobamba,  eighty-five 
miles  east  and  north  of  Quito,  was  destroyed  with 
thousands  of  its  inhabitants  in  1797,  and  subse- 
quently rebuilt  in  a  less  dangerous  position.  It 
is  to-day  an  ecclesiastical  and  educational  centre, 
with  a  population  of  some  20,000.  Cuenca,  the 
third  most  populous  city  in  Ecuador  (45,000  in- 
habitants), lies  to  the  south  in  a  fertile  basin 
watered  by  the  Paute.  Sugar  is  grown  in  the  dis- 
trict, and  the  city  has  several  refineries.  Lata- 
cunga,  near  the  peak  of  Chimborazo,  has  a  popu- 
lation of  10,000  ;  and  Esmeraldas,  in  the  north,  is 
an  important  port  and  the  centre  of  a  rapidly 
developing  district.  Other  chief  ports  are  Puerto 
Bolivar,  Manta,  and  Bahia  de  Caraquez.  The 
population  of  the  entire  country  slightly  exceeds 
2,000,000,  but  no  trustworthy  figures  are  obtain- 
able.  The  mestizo  class  largely  predominates,  and 
the  huge  Oriente  Province  is  almost  entirely  in- 
habited by  uncivilized  Indians,  Jibaros,  Zaparos, 
and  Piojes. 

The  export  figures  for  1909  show  a  slight  de- 
crease of  trade  as  compared  with  those  of   1908, 


ECUADOR 


227 


due  principally  to  a  decline  both  in  value  and 
amount  exported  of  cocoa,  and  to  the  fact  that  in 
1908  an  unusually  large  amount  of  gold  specie  was 
shipped.  On  the  other  hand,  the  export  of  vege- 
table ivory  was  nearly  three  times  that  of  1908. 
Imports  also  were  reduced,  as  a  consequence  of 
over-importation  in  the  previous  year.  The  total 
figures  for  1909  were  :  Exports,  ;63,ooo,62i  ;  im- 
ports, ;^i, 870,424,  and  the  balance  of  trade  in 
favour  of  Ecuador  was,  therefore,  ;^i,  126,377. 

The  subjoined  table  compares  the  export  trade 
of  the  last  two  years  for  which  details  are  avail- 
able ; — 


I 

908. 

1909 

Tons. 

Value. 

Tons. 

*  Value. 

Cocoa 

32,119 

^2,087,742 

31,949 

.^I 

,757,176 

Vegetable    Ivory 

'      10,363 

1 60,046 

18,620 

471,667 

Straw  Hats 

159,857 

— 

23',7I5 

Rubber       . 

402 

120,712 

514 

174,855 

Coffee 

3,787 

113,616 

3,420 

116,286 

Gold  Specie,  etc 

— 

355,047 

— 

140,000 

Hides 

766 

38,802 

889 

46,238 

Toquilla  Straw 

97 

18,091 

127 

16,745 

Fruits 

10,857 

— 

12,734 

Various 

— 

24,658 

— 

33,205 

^3,089,428 

;^3,ooo,62i 

Fra.nce  was  the  greatest  consumer  of  Equatorian 
products  in  1909,  taking  goods  (almost  exclusively 
cocoa)  to  the  value  of  ;^892, 161,  as  compared  with 
;^i, 010,577  in  1908.  The  next  most  important 
customer  was  the  United  States,  with  ^^683, 229, 
as  against  ;^774,282  in  the  previous  year  ;  Ger- 
many, which  in  1908  consumed  products  to  the 
value  of  only  ^198,356,  occupied  third  place  in 


228  THE   TEN   REPUBLICS 

1909  with  i^3 1 5, 599,  while  Great  Britain's  importa- 
tion fell  from  ;^352,288  to  ^250,147. 

In  1909  Ecuador  imported  from  Great  Britain 
goods  to  the  value  of  ^^629,965,  as  against  ^^720,482 
in  1908  ;  from  the  United  States  ^^^479,569,  as  com- 
pared with  ^409,769  in  the  previous  year  ;  from 
Germany  ;^334,686,  representing  a  decrease  of 
^95,137;  and  from  France  ^^122, 087,  as  against 
;^i47,722  in  1908.  The  principal  items  were  : 
Silk  fabrics  and  general  textiles,  ;^497,923  ;  food 
products,  i^2i5,220;  gold  and  silver,  ;^  170, 600  ; 
clothing,  ;^I39,3I4 ;  ironware,  ;^i  19,362;  wines 
and  liquors,  ;^65,095  ;  machinery,  ^^68,799;  and 
drugs  and  medicines,  ;^38,240. 

The  financial  situation  of  Ecuador  is  notoriously 
not  of  the  happiest.  The  Budgets  of  recent  years 
have  invariably  shown  deficits,  and  the  Govern- 
ment has  for  a  long  time  been  embarrassed  by  the 
need  of  funds  for  necessary  undertakings.  The 
service  of  some  of  the  debts  is  still  unpaid  for  1909, 
and,  in  addition,  the  public  indebtedness  has 
been  increased  by  loans  which  could  not  be,  or 
were  not,  met  out  of  the  corresponding  revenues, 
and  which  were  consequently  added  to  the  burden 
of  the  future.  The  fiscal  situation  of  the  country 
urgently  needs  regularization. 

The  external  debt  is  as  old  as  the  Republic 
itself,  for  Ecuador,  when  she  separated  from 
Colombia  in  1834,  was  made  responsible  for  a 
proportion  of  the  Colombian  debt,  her  share 
amounting,  with  arrears  of  interest,  to  ;^2, 108,377. 


ECUADOR  229 

On  June  30th,  1910,  the  amount  in  circulation  of 
the  public  indebtedness  was  ;^4,35 1,102,  and 
though  for  the  service  of  this  debt  she  has 
assigned  heavy  charges  on  her  revenues,  these  do 
not  increase  rapidly  enough  to  meet  it. 

The  large  item  for  military  expenditure  was  due 
to  the  anticipated  possibility  of  war  with  Peru. 

The  total  budgetary  revenue  was  ^^"1,589,011 
and  total  expenditure  ;^i,504,795,  showing  a  sur- 
plus of  ;^84,2i6,  but  if  in  the  expenditure  pay- 
ments effected  out  of  the  proceeds  of  loans  were 
included  the  result  would  be  a  considerable  deficit. 

Ecuador  is  one  of  the  few  Latin  American 
countries  having  a  gold  standard.  Its  monetary 
unit  is  the  gold  condor  of  10  sucres,  worth  £\ 
sterling.  The  silver  sucre,  worth  2s.,  and  its  sub- 
divisions are  legal  tender  only  up  to  ^i. 

Of  all  the  republics  of  South  America,  Ecuador 
stands  most  in  need  of  railroads.  At  present  she 
has  but  one  of  any  consequence— the  Guayaquil 
and  Quito  Railway,  which,  starting  from  Duran, 
a  city  on  the  river  Guayas  opposite  Guayaquil, 
climbs  over  the  western  Andean  range  to  Quito,  a 
distance  of  290  miles.  The  complete  line  was 
opened  to  traffic  in  July,  1908,  and  the  cost  of 
working  it  is  so  heavy  that  up  to  the  present 
the  receipts  have  barely  exceeded  the  expenses. 
Quito  is  also  to  be  linked  with  Bahia  de  Caraquez 
on  the  coast  of  the  Manabi  province,  and  the  con- 
struction of  the  line  is  advancing.  Some  twelve 
miles  have  been  opened  to  traffic,   and  within  a 


230  THE   TEN   REPUBLICS 

short  time  a  further  considerable  section  will  be 
ready.  The  line  from  Puerto  Bolivar  to  El 
Pasaje  was  found  to  be  in  such  a  bad  state  that,  in 
view  of  the  danger  of  war  with  Peru,  it  was 
decided  to  repair  it  at  once. 

A  line  is  projected  from  Manta,  on  the  Manabi 
coast,  to  Santa  Ana,  passing  through  the  cities  of 
Montecristo  and  Puerto  Viejo,  and  President 
Alfaro  has  pointed  out  the  pressing  necessity  of  a 
line  or  lines  to  open  up  the  great  and  rich  province 
of  Oriente.  The  threatened  war  has  interrupted 
negotiations  for  the  lines  from  Huigra  to  Cuenca 
and  from  Quito  to  Ibarra  and  Tulcan,  but  a  pro- 
visional contract  has  been  entered  into  for  the 
construction  of  a  line  from  Puerto  Bolivar  to 
Biblian,  which  would  tap  a  district  both  rich  in 
minerals  and  adapted  for  agriculture. 

A  considerable  part  of  the  revenue  is  devoted  to 
public  instruction,  and  the  education  of  the  people 
is  being  greatly  improved  under  the  modern 
system  that  has  been  adopted.  In  Quito  there  are 
five  colleges  (including  a  military  college),  a 
normal  institute  for  girls  and  another  for  young 
men,  a  university,  schools  of  medicine,  theology 
and  arts  and  crafts,  a  science  institute  and  three 
kindergartens.  There  are  altogether  more  than 
1 200  elementary  schools,  attended  by  70,000  pupils. 
The  State  supports  or  assists  young  men  in 
colleges  and  universities  of  the  United  States  and 
Europe,  where  they  study  for  the  various  engineer- 
ing professions. 


CHAPTER   XI 

PARAGUAY 

Paraguay  is  one  of  the  two  inland  countries  of 
Latin  America,  Bolivia  being  the  other.  It 
borders  upon  Bolivia,  Brazil  and  Argentina, 
covers  an  extent  of  about  197,000  square  miles, 
and  at  the  time  of  the  last  census,  1908,  had  a 
population  of  715,841,  being  an  increase  of  133 
per  cent,  since  1887.  The  climate  is  sub-tropical, 
modified  and  made  healthful  by  several  mountain 
chains  and  an  extensive  hydrographic  system. 

Paraguay  is  magnificently  watered,  yet  few  of  its 
rivers  are  navigable  by  vessels  of  any  considerable 
draught.  While  the  great  river  systems  of  the 
Upper  Parana  and  the  Paraguay  give  direct  exit 
to  Argentina  and  Uruguay,  the  Paraguay  also 
runs  through  the  entire  length  of  the  Republic. 
This  great  river  divides  the  country  into  ''Para- 
guay Oriental"  and  ''Paraguay  Occidental." 
The  first-named  region  enjoys  the  better  climate, 
and  is  well  wooded  at  a  good  elevation  above 
sea-level.  Occidental  or  Western  Paraguay,  more 
familiarly  known  as  "The  Chaco,"  is  a  swampy, 
jungly,  and,  in  some  parts,  almost  desert  area 
mainly  inhabited  by  the  Chaco  Indians,  who,  in 

231 


232  THE   TEN   REPUBLICS 

the  twentieth  century,  continue  to  be  a  primitive 
and  undeveloped  race.  Lesser  rivers  are  the 
Jujuy,  Apa,  Monday,  Tibicuary  and  Manduvira, 
but  the  navigation  of  these  is  not  safe  at  all 
seasons. 

To  the  English-born  Sebastian  Cabot  belongs 
the  credit  of  having  discovered  Paraguay,  in  the 
course  of  his  exploration  of  the  upper  Parana  and 
Paraguay  rivers  in  1526-7.  A  Spanish  settlement 
was  ultimately  established  in  1536,  en  the  site  of 
Asuncion,  now  the  capital  of  the  Republic.  The 
explorer,  De  Vaca,  appointed  by  the  King  of 
Spain  Governor  of  the  new  province  (but  subject 
to  the  Viceroy  of  Peru)  in  1542,  had  to  travel 
130  days  in  order  to  reach  Asuncion,  in  that 
period  exploring  upwards  of  a  thousand  miles 
of  trackless  territory.  It  must  be  understood  that, 
originally,  Paraguay  covered  a  far  larger  area 
than  now,  including  all  the  territory  drained  by 
the  River  Plate.  Jesuit  missionaries  began  to 
arrive  toward  the  close  of  the  sixteenth  century, 
and  did  effective  missionary  and  educational  work 
among  the  Indians  until  expelled  by  decree  of  the 
King  of  Spain  in  1769. 

When  Argentina  broke  away  from  Spain  in 
1810  and  took  the  title  of  ''United  Provinces  of 
the  Rio  de  la  Plata,"  it  was  intended  to  include 
Paraguay  in  that  designation.  The  Paraguayans 
thought  otherwise,  however,  and  met  and  defeated 
an  army  sent  against  them  from  Argentina. 
They    then    declared    their    independence    as    a 


PARAGUAY 


233 


separate  Republic  (181 1),  adopted  a  national  flag, 
and  a  new  constitution,  lodging  the  executive 
power  in  two  consuls,  was  promulgated  in  1813  ; 
but  in  1814  Dr.  Francia  became  Dictator,  holding 
office   until    1840.     In    1844   Don    Carlos    Lopez 


was  made  President,  being  followed  by  his  son. 
Marshal  Solano  Lopez,  in  1862.  This  ambitious 
man  speedily  plunged  his  country  into  one  of  the 
most  prolonged  and  disastrous  wars  of  inodern 
times.  Allied  against  Paraguay  was  the  armed 
strength  of  Brazil,   the  Argentine  Republic  and 


234  THE   TEN   REPUBLICS 

Uruguay,  and  in  the  five  years  1865-70  the  little 
Republic's  gallant  army  and  fine  navy  were  de- 
stroyed, and  100,000  Paraguayans  were  slain. ^ 
The  struggle  only  terminated  with  the  death  of 
Lopez  in  battle,  and  the  loss  of  a  large  slice  of 
territory  yielded  to  Brazil  on  the  conclusion  of 
peace  in  1870,  in  addition  to  which  large  war 
indemnities  were  imposed.  The  paralysing  effects, 
financial  and  social,  of  this  war  are  still  being  felt 
in  Paraguay,  and  '^  paralysed  Paraguay"  has 
been  the  text  for  many  writers.  When  peace 
was  proclaimed,  out  of  a  population  of  1,337,439, 
only  221,080  were  left,  and  of  these  the  men 
numbered  scarcely  29,000.  The  country  had  prac- 
tically to  be  entirely  reclaimed,  and  this  accounts 
for  the  difficulty  the  Government  has  experienced 
in  attracting  colonists,  in  spite  of  the  advantages 
proffered  them.  Peace  being  at  last  arranged,  a 
fresh  constitution  reorganized  the  Government, 
and  at  Christmas,  187 1,  Don  Jose  Jovellanos 
became  President.  With  occasional  disorders  and 
spasms  of  civil  war,  the  affairs  of  the  country 
progressed  under  successive  Presidents  down  to 
the  beginning  of  191 1,  when  Colonel  Jara,  the 
Minister  for  War,  managed  to  effect  a  coitp  d'etat 
and  get  himself  declared  President.  He  has  been 
described  as  "  a  young  man  of  great  energy  and 
determination,    fearless,    and   with   a   genius    for 

1  "  No  invasion  of  barbarians  such  as  ravaged  Europe  in  the 
early  centuries  could  have  wrought  more  ruin  or  entailed  more 
misery.     Nothing  seemed  left."— Lady  Susan  Townley. 


PARAGUAY  235 

intrigue."  He  certainly  seems  to  be  gifted  with 
strength  and  with  considerable  ability,  and  it  is 
to  be  hoped  that  under  the  new  regime  a  wise 
and  expansive  policy  may  be  maintained. 

Of  the  chief  towns,  Asuncion,  the  capital,  has 
a  population  of  52,000,  Villa  Rica,  30,000 ;  Con- 
cepcion,  25,000  ;  Encarnacion,  about  8000  ;  Caa- 
zapa,  7000,  and  Estanislao,  7000.  A  pleasing 
picture  of  Asuncion  has  been  given  by  Lady 
Susan  Townley,  who  was  there  in  1909.  "My 
first  impressions  of  the  gay  little  capital  of 
Paraguay,"  she  writes  in  The  Times,  ''were  of 
scent  and  colour — the  scent  of  orange  blossoms 
borne  on  the  breeze,  the  colour  of  glorious  bougain- 
villeas  tumbling  in  violent  cascades."  Satisfactory 
evidence  of  the  growth  of  Asuncion  as  a  port  is 
derived  from  the  fact  that  as  long  ago  as  1908, 
1320  ships  entered  and  1184  cleared  from  its 
harbour.  There  is  a  weekly  steamship  service 
with  Buenos  Aires  in  addition  to  the  ''inter- 
mediate boats  "  of  other  lines,  and  this  year  there 
will  be  through  railway  communication  with 
Argentina.  The  Republic  was  admitted  into 
the  International  Postal  Union  in  1884,  while 
already  two  thousand  miles  of  telegraphs  are  in 
operation  and  are  being  extended  to  the  Brazilian 
boundary. 

Until  November,  1910,  no  budget  had  been 
presented  to  Congress  for  the  last  five  years, 
and  last  year's  revenue  was  calculated  on  the 
basis   of  the  amount  of  taxes  collected  in   1908. 


236  THE   TEN   REPUBLICS 

The  revenue  for  191 1,  derived  from  import  and 
export  duties,  wharf  dues,  transit  dues  on  foreign 
produce,  land  tax,  etc.,  is  estimated  at  ^^652, 300, 
and  the  expenditure,  which  provides  for  ;^i 30,000 
for  the  service  of  the  public  debt,  i^i 20,000  for 
War  and  Marine,  and  i^io8,ooo  for  Interior, 
at    ^651,550,    thus    anticipating     a    surplus    of 

During  1910  the  Government  met  with  punctu- 
ality the  interest  on  the  National  Debt,  and  has 
redeemed  a  portion  of  the  principal  since  1900. 
The  Republic's  liabilities  in  1910  were  ; — 

Loan,  3  per  cent  ....         803,643 
Amount  owing  to  French  Bank     .  130,300 

Floating  debt  (approximate)  .  70,000 

1,003,943 


But  we  have  also  to  bear  in  mind  the  considerable 
amount  of  paper  money  in  circulation,  against 
which,  on  June  30th,  1910,  the  gold  in  the  Con- 
version Chest  amounted  to  471,000  pesos. ^ 

It  cannot  be  said,  then,  considering  all  she  has 
gone  through,  that  Paraguay  is  very  seriously  em- 
barrassed financially.  Exports  rose  to  i^i, 027,328 
in  1909  and  imports  to  ^757,590,  as  against 
^^773,419  and  ^^814,591  respectively  in  1908,  show- 
ing a  net  increase  in  trade  of  ^196,908  and  at  the 
same  time  the  first  trade  balance  in  favour  of  the 

^  The  value  of  the  g"old  peso  is  the  same  as  that  of  Argentina, 
viz.  4s.     The  paper  peso  is  worth  about  3/^cl. 


PARAGUAY  237 

Republic  for  five  years.  About  forty  per  cent,  of 
Paraguayan  exports  consisted  of  animal  products  : 
hides  (;^233,458),  dried  meat  or  charqtd  {£\Sy^$'j) 
and  a  few  consignments  of  horns. 

Paraguay's  best  customer  is  Argentina,  where 
she  finds  a  ready  market  for  her  mate  (Para- 
guayan tea),^  oranges,  hides,  tobacco,  and  lumber. 
Mate  is  one  of  the  principal  products,  some 
17,600,000  lb.  being  treated  annually,  and  half 
this  amount  exported.  In  1909,  i^i  14,000  was 
sent  abroad,  and  by  July,  1910,  the  entire  product 
had  been  sold.  The  quebracho  tree  comes  next 
in  importance.  It  grows  mainly  in  the  Chaco. 
Its  very  hard  wood  is  used  for  railway  sleepers 
and  fence  posts,  but  it  is  chiefly  valued  for  the 
tannic  properties  of  its  extract,  of  which,  in  1909, 
the  country  prepared  and  exported  ;^i30,49i 
worth.  Land  bearing  this  tree  sells  at  i^6oo  and 
upwards  per  square  league.  Of  timber  of  all  sorts 
just  short  of  ;6^200,ooo  was  exported  in  the  same 
year.  Tobacco  is  the  next  leading  crop,  the  out- 
put being  estimated  at  6,000,000  lb.  annually,  of 
which  half  is  exported  and  the  rest  consumed  at 
home.  This  industry  alone,  it  has  been  said, 
should  suffice  to  ensure  for  Paraguay  a  great 
future.  The  leaf  from  which  the  cigars  are  manu- 
factured is  of  so  excellent  a  quality  that,  with 
more  care  and  skill  in  their  manufacture,  Para- 
guayan     cigars      would      rival      the      far-famed 

^  Mat^xs  the  product  of  an  evergreen  plant  of  the  Ilex  species, 
and  is  the  beverage  par  excellence  of  all  Paraguayans. 


238  THE   TEN    REPUBLICS 

**  Havana."  It  having  been  discovered  that  the 
soil  closely  resembles  that  of  the  '' Vuelta  Abajo" 
of  Cuba,  seed  from  that  locality  has,  in  fact,  been 
introduced,  and  with  complete  success.  The  to- 
bacco crop  is  of  three  varieties ;  the  Havana-quality 
weed,  a  strong  native  tobacco  which  finds  its  chief 
market  in  Argentina,  and  a  mild  one  which  is 
largely  exported  to  Europe.  The  total  value  of 
tobacco  exported  in  1909  was  ;^i09,894. 

It  is  also  certain  that,  with  more  capital  and  in- 
creased transport  facilities,  cotton  will  become  a 
very  considerable  source  of  wealth  to  the  country. 
As  long  ago  as  1863  there  were  58,000,000  plants 
under  cultivation,  and  Paraguayan  cotton  is  of  a 
particularly  silky  quality.  A  little  rubber  is  now 
exported  annually  (chiefly  to  France),  though  this 
industry  dates  only  from  1907.  Other  products  are 
essential  oils,  beer,  native  whisky,  soap,  furniture, 
leather,  and  bricks.  There  is  a  considerable  out- 
put of  maize,  and  in  1908  the  export  of  oranges 
reached  nearly  11,000,000. 

The  raising  of  cattle  has  increased  so  rapidly  on 
the  fertile  pastures  that  by  1910  there  were6,ooo,ooo 
head  in  the  country,  whereof  the  home  consump- 
tion does  not  exceed  eight  per  cent.  The  free  im- 
portation of  cattle  from  Argentina  andMattoGrosso 
(Brazil)  is  permitted  with  the  usual  restrictions. 
There  are  a  number  of  tanneries,  and  two  large 
beef-curing  establishments,  where  nearly  40,000 
beasts  are  annually  disposed  of. 

A  powerful  stimulus  has  been  given  to  the  cattle- 


PARAGUAY  239 

raising  industry  of  late  years  by  the  influx  of 
cattlemen  from  Brazil  and  Argentina.  Much  of 
the  trade  in  jerked  beef  is  done  with  Cuba,  Brazil, 
and  Spain,  while  the  hides  command  such  ex- 
cellent prices  on  the  European  markets  that  they 
constitute  the  principal  export  of  the  country. 

Among  the  minerals  found  in  Paraguay — but, 
generally  speaking,  sadly  undeveloped— may  be 
named  quartz,  agate,  opals,  kaolin,  iron,  copper, 
mercury  and  manganese.  Iron  is  said  to  be  plen- 
tiful in  the  north  of  the  Republic. 

A  principal  article  of  commerce  with  the  United 
States  is  the  oil  of  petit  grain.  This  is  extracted 
from  the  leaves  of  a  native  orange  tree,  and  is 
used  as  the  basis  of  various  perfumes  and  in  mak- 
ing flavouring  extracts.  In  1909  this  commodity 
was  exported  to  the  value  of  ^18,490.  The  export 
of  oranges,  a  fruit  which  grows  in  profusion  and 
to  perfection  in  certain  districts,  amounted  in 
the  same  year  to  ^^53,000. 

More  railways  and  more  immigrants  must  be 
Paraguay's  two  principal  requirements  for  some 
time  to  come.  Till  recently  the  country  possessed 
but  one  railway,  less  than  two  hundred  miles  of 
direct  line  altogether,  but  soon  an  extension  of 
the  ''Paraguay  Central"  will  enable  the  traveller 
to  board  the  train  at  Asuncion  and  go  direct  to 
Buenos  Aires  (iioo  miles)  without  changing  and 
in  less  than  fifty  hours.  This  line  will  thus  enjoy 
the  unique  distinction  of  being  the  key  to  the  rich 
central  regions  of  South  America  ;  the  gauge  has 


240  THE   TEN   REPUBLICS 

been  altered  by  arrangement  with  the  Argentine 
North-Eastern  Railway  Company  and  new  and 
improved  rolling  stock  manufactured  by  several 
British  firms.  It  is  hoped,  moreover,  that  the 
volume  of  trade  will  enable  Paraguay  to  link  up 
with  the  railways  of  Uruguay.  When  it  is  stated 
that  the  cost  of  carriage  by  water  between  Asun- 
cion and  Buenos  Aires  (a  four  days'  journey)  has 
been  greater  than  that  between  the  Argentine 
capital  and  Liverpool  or  Southampton,  it  will  be 
understood  how  much  this  line  means  to  Para- 
guay. Another  short  railway,  some  sixty  miles 
in  length,  will  connect  Concepcion  with  Horqueta 
and  will  greatly  accelerate  the  transport  of  cattle 
and  timber. 

The  development  of  the  Chaco  is  only  in  its 
first  stages.  A  few  years  ago  the  primitive  tall- 
wheeled  ox-cart  was  the  principal  means  of  trans- 
port, whereas  it  now  serves  as  a  '^  feeder"  for  the 
light  railways.  It  is  noteworthy  that  the  French 
local  main-line  railway  is  being  prolonged  from 
Resistencia  towards  the  north,  with  Asuncion,  the 
capital,  as  its  objective.  Traversing  as  it  will  the 
eastern  interior  of  the  Chaco,  this  line  cannot  but 
benefit  the  whole  industrial  outlook,  since  from  it 
will  flow  a  system  of  interlacing  lines  to  open  up 
a  hitherto  undeveloped  territory. 

Immigrants  have  so  far  been  arriving  in  Para- 
guay only  at  the  rate  of  about  a  thousand  per 
annum,  and  they  make  but  ij  per  cent,  of  the 
population.     Of  this  number  very  few  are  British 


PARAGUAY  241 

and  the  majority  Italians  and  Germans.  It  is  a 
significant  fact  that  in  1908  the  number  of 
Germans  settling  in  Paraguay  was  146.  while 
there  was  no  record  of  English  immigrants.  This 
question  of  the  population  is  the  most  pressing 
problem  of  the  day.  Even  now  amongst  the 
native  inhabitants  the  females  largely  predominate. 
The  scarcity  of  money  and  the  amount  of  the 
paper  currency  are  still  drawbacks  to  the  fuller 
exploitation  of  Paraguayan  resources.  The  present 
issue  of  about  ;^500,ooo  in  paper  money  is  obvi- 
ously insufficient  for  the  commercial  needs  of  a 
million  inhabitants  whose  centres  of  commerce  are 
so  far  apart  ;  this  scarcity  of  money  has  even  led 
to  the  introduction  in  rural  districts  of  the  primi- 
tive system  of  exchange  of  products.  A  deter- 
mination seems  to  have  been  arrived  at  to  abstain 
from  further  new  issues  until  the  values  in  relation 
to  the  gold  standard  can  be  adjusted.  In  order  to 
convert  the  existing  paper  currency,  Congress 
passed  laws  in  1907  and  1910  respectively.  The 
first  of  these  ordered  the  entire  proceeds  of  the 
export  duties  on  hides  (say  ^50,000  per  annum) 
to  be  set  apart  for  a  ''conversion  fund," while  that 
of  1910  authorized  a  loan  of  ;^i, 000,000,  at  five 
per  cent.,  to  be  utilized  in  part  payment  of  the  debt 
to  the  French  Bank,  for  public  works,  and  in 
establishing  an  exchange  rate  by  means  of  a 
system  of  conversion  such  as  that  adopted  in  Brazil 
and  Argentina.  Meanwhile,  improved  trade  and  the 
deposit  of  nearly  i^ioo,ooo  (being  some  twenty  per 


342  THE   TEN   REPUBLICS 

cent,  of  the  value  of  the  note  circulation)  brought 
about  a  rapid  and  welcome  fall  in  the  rates  of 
exchange — the  average  commercial  gold  quotation, 
which  had  been  1521  per  cent,  in  1909,  having 
fallen  to  1384  during  1910.  In  1906-7  there  had 
been  a  financial  "slump"  due  to  overstocking, 
but  the  recovery  from  this  state  of  affairs  has  been 
so  rapid  that  the  British  Consul  at  Asuncion  was 
able  to  write  :  "  In  face  of  adverse  circumstances 
with  which  it  had  to  contend,  it  speaks  well  for 
the  business  community  that,  with  two  or  three 
unimportant  exceptions,  there  have  been  no 
failures."  The  Banco  Agricola,  which  is  State- 
capitalized,  grants  loans  to  work-people  at  the  com- 
paratively low  rate  of  six  percent,  per  annum,  and 
this  has  benefited  agriculturists  :  but  its  modest 
capital  of  ^^200,000  is  too  small  to  be  effective. 
Ordinary  interest  on  money  is  very  high,  the 
current  rate,  even  with  substantial  guarantees, 
being  fifteen  per  cent. 

A  good  deal  of  smuggling  goes  on,  this  being 
aided  by  the  vast  extent  of  the  river-side  territory 
and  its  contiguity  to  the  Argentine  frontier.  The 
land  tax  is  very  small,  but  it  is  by  no  means  easy 
with  the  means  at  hand  to  organize  the  collection 
of  taxes  over  so  vast  an  area.  The  Customs 
duties  are  levied  ad  valorem;  a  new  valuation 
tariff  which  became  law  in  1909  is  similar  to  that 
of  Argentina.  While  the  average  of  the  import 
duties  may  be  calculated  at  forty  per  cent.,  a  large 
number  of  articles,  notably  machinery  and  imple- 


PARAGUAY  243 

ments  used   in  the  meat   industry,   are  admitted 
duty  free. 

The  majority  of  the  roads  in  Paraguay  neces- 
sarily provide  very  rough  travelling,  and  all  that 
the  opening  of  the  new  railway  ^  means  to  the  little 
Republic  has  been  admirably  expressed  by  Lady 
Susan  Townley,  in  an  interesting  article  in 
The  Times  South  American  Number  of  Decem- 
ber 28th,  1908:  ''At  every  village  where  we 
stopped  and  were  entertained,"  she  writes,  ''the 
conversation  of  our  hosts  invariably  turned  upon 
this  topic.  '  Until  the  railway  is  brought  within 
our  reach,'  they  would  sadly  remark,  'progress  is 
impossible  in  Paraguay.'  At  present  all  the  cattle 
have  to  be  driven,  sometimes  over  immense  dis- 
tances, to  market,  and  they  grow  footsore  and  thin 
on  the  way,  thus  losing  considerably  in  value, 
whilst  the  grain  and  other  produce  has  to  be  con- 
veyed to  Asuncion  by  the  antiquated  and  slow 
bullock-waggons.  Though  the  land  is  so  fertile, 
the  pastures  so  rich,  the  forests  so  full  of  valuable 
timber,  these  sources  of  wealth  to  the  country  are 
rendered  comparatively  valueless  by  the  cost  and 
difficulty  of  conveyance  to  market.  Luckily  the 
'Paraguayan  Central,'  the  only  railway  in  the 
country,  is  being  rapidly  pushed  on,  and  will  in 
the  near  future  form  a  continuous  link  between 
Asuncion  and  Villa  Encarnacion  in  the  south, 
tapping  in  its  course  the  rich  grain  and  cattle  dis- 

^  The  writer  is  advised  that  the  railway  should  be  completed 
by  June  of  the  present  year  (191 1). 


244  THE   TEN   REPUBLICS 

tricts  of  'Misiones'i  on  the  one  hand,  and  the 
great  yerba-mate  plantations  and  valuable  forest- 
lands  on  the  other.  Ultimately  this  railway  is  to 
be  connected  by  means  of  a  ferry-boat  over  the 
Parana  river  with  Posadas,  and  from  there,  with- 
out change  of  gauge,  via  the  Argentine  railway 
systems  of  Corrientes  and  Entre  Rios  with  Buenos 
Aires  itself,  the  great  exporting  centre  of  South 
America.  Then  will  Paraguay  have  her  chance, 
being  for  the  first  time  in  her  history  brought 
into  direct  railway  communication  with  the  rest  of 
the  world." 

It  is  difficult  to  realize  that  previous  to  the 
great  war  Paraguay  was  a  richer  and  more 
prosperous  country  than  Argentina  was  at 
that  period.  The  war  occurred  at  a  critical 
moment  in  the  history  of  South  American  com- 
merce. From  1865  to  1875  the  processes  for 
freezing  meat  were  being  perfected,  and 
Great  Britain  was  seeking  fresh  food  supplies. 
Owing  to  the  destruction  of  the  Paraguayan 
estancias,  Argentina  secured  the  new  trade,  the 
foreign  capital,  and  the  numerous  immigrants. 
Paraguay  has,  however,  already  done  much  to 
regain  her  position,  and  the  qualities  that  she  has 
shown  in  making  this  effort  augur  favourably  for 
her  commercial  importance  in  the  near  future. 

^  A  term  applied  to  the  land  where  the  Jesuits  formerly  main- 
tained so  many  missions. 


CHAPTER   XII 

PERU 

"Let  observation  with  extensive  view 
Survey  mankind  from  China  to  Peru." 

These  lines  of  Samuel  Johnson's  suggest  that  to 
Fleet  Street  Peru  stands  for  the  uttermost  bounds 
of  the  earth  ;  to  South  America,  however,  it  bears 
a  very  different  relation.  Historically,  politically, 
and  geographically,  Peru  is  the  heart  of  the 
continent. 

The  mountains  of  the  Andes,  with  their  varied 
temperature  and  fertile  valleys,  offered  to  the 
aboriginal  races  more  than  the  bare  subsistence 
obtainable  elsewhere,  but  they  did  not  offer  it 
gratuitously  ;  the  kindly  fruits  of  the  earth  were 
the  reward  of  energy  and  intelligence,  and  thus 
the  Peruvian  became  the  superior  in  civilization  of 
his  brethren  in  the  plains,  over  whom  he  lorded  it 
until  he  in  his  turn  succumbed  in  the  sixteenth 
century  to  the  Spaniards.  With  their  advent  the 
importance  of  the  country  increased  ;  for  many 
years  the  whole  of  the  Spanish  dominions  in 
South  America  were  ruled  from  Lima,  and  it  was 
not  until  the  insurgent  republics  were  victorious 
in  Peru  that  their  independence  was  secured. 

This  long  pre-eminence  has  given  Peru  claims 
245 


246  THE   TEN   REPUBLICS 

on  territory  coveted  by  her  neighbours,  and  the 
attention  of  statesmen  lias  still  to  be  directed  from 
time  to  time  to  her  frontiers  in  the  fear  that 
questions  suitable  for  arbitration  should  be  decided 
by  the  sword.  It  is  but  a  few  years  ago  that  she 
was  deprived  by  Chile  of  her  coast  province  of 
Tarapaca,  of  which  the  deserts — at  once  rich  and 
barren — have  influenced  her  history  no  less  than 
her  mountains  themselves. 

It  is  with  something  akin  to  relief  that  we  turn 
to  a  country  whose  attractions  do  not  wholly  lie  in 
her  commercial  opportunities.  Wonderful  to  con- 
template as  is  the  onward  flow  of  the  great  stream 
of  materialism  that  has  left  no  South  American 
state  untouched,  the  discovery  of  opposite  tenden- 
cies which  furnish  evidences  of  past  history  and 
tradition  that  has  not  yet  given  way  to  modern 
habits  of  thought,  is  refreshing.  Just  as  the  ruins 
of  old  Peru  among  the  Cordillera  valleys  turn  our 
inward  eye  to  the  vision  of  an  older  civilization, 
finer  and  more  thoughtful  in  many  ways  than  our 
own,  so  the  essential  characteristics  of  the  Peru- 
vian nature,  proceeding  from  the  merging  of 
Spanish  romanticism  with  the  native  Quechuan 
melancholy,  suggest  an  influence  that  may  be 
of  much  value  in  the  future  to  the  great  world 
of  South  American  life. 

From  Lima,  the  original  chief  seat  of  the 
Spanish  viceroys,  the  home  of  the  first  South 
American  printing  press  and  the  first  university, 
come  evidences  of  that  spirit  of  culture  without 


PERU 


247 


which  no  social  centre,  however  prosperous,  can 
for  long  be  sufficient  unto  itself  and  retain  the 
affection    of   its   more    thoughtful    citizens.     The 


way  in  which  her  educational  and  literary  institu- 
tions have  placed  their  resources  at  the  service  of 
practical  investigation  and  research  points  to  the 


248  THE   TEN   REPUBLICS 

conversion  of  the  old  Lima  to  a  wide  educational 
outlook,  and  to  another  result  that  will  have  an 
equally  important  influence  upon  the  future  of  the 
city,  the  modern  Lima's  recognition  of  the  value 
of  its  inheritance  from  the  past. 

Peru's  early  history  is  so  minutely  recorded  in 
Prescott's  classic  pages  that  even  the  barest 
allusion  to  it  here  would  be  supererogatory.  It 
is  Peru  in  the  last  decade  or  two  that  this  chapter 
would  show,  a  less  richly  romantic,  but  a  gener- 
ally improved  and  advanced  Peru,  no  longer  a 
mere  gold  mine,  but  a  workaday  nation  turned  to 
the  cultivation  of  its  varied  sources  of  wealth  and 
gradually  recovering  from  its  misfortunes. 

In  1884,  after  the  war  which  lost  her  the  nitrate 
province  of  Tarapaca,  Peru's  position  could  hardly 
have  been  worse.  President  Iglesias  was  more 
Chile's  choice  than  Peru's,  and  malcontents  soon 
became  actively  hostile  under  the  determined  and 
resourceful  General  Caceres,  the  Chilian  troops 
having  scarcely  evacuated  Lima  when  the  streets  of 
the  old  city  rang  with  civil  strife.  Financially  the 
country  was  ruined,  and  a  depleted  Treasury  was 
confronted  with  the  result  of  former  reckless 
borrowing  in  the  shape  of  a  foreign  debt  of 
i^23, 000,000.  But  on  the  one  hand  a  truce  was 
arranged  between  the  contending  parties  and 
in  1886  Caceres  was  chosen  as  President  by  a 
Ministerial  Council  ;  while  on  the  other  the 
foreign  debt,  (almost  exclusively  English),  was 
later  on  taken  over  by  the  Peruvian  Corporation 


PERU  249 

in  exchange  for  the  cession,  during  a  term  of 
years,  of  the  guano  deposits,  railways,  State  lands 
and  mines  ;  and  for  a  time  all  promised  well.  In 
1890,  however,  upon  the  termination  of  Caceres' 
period  of  office,  dissensions  arose  as  to  his  suc- 
cessor, with  the  result  that  Caceres  was  again 
elected  President.  A  large  party  under  Nicolas 
de  Pierola  rose  against  him  in  1895,  and 
for  three  days  there  was  heavy  fighting  in 
the  capital.  Caceres  was  defeated  and  Pierola 
became  President,  his  administration  being 
marked  by  Peru's  first  step  towards  pro- 
gress. He  was  succeeded  by  Eduardo  de 
Romana,  whose  peaceful  term  was  followed  by 
another,  unfortunately  brief,  under  President 
Candamo,  who  died  in  office.  In  1904  Dr.  Jose 
Pardo  was  elected  to  the  Presidency,  since  when, 
with  the  exception  of  a  ''  revolution,"  headed  last 
year  by  the  brothers  Amadeo  and  Isaias  Pierola, 
in  the  course  of  which  President  Leguia  was  for  a 
few  hours  held  prisoner  by  a  party  of  the  insur- 
gents, Peru's  history  has  been  one  of  peace  and, 
as  will  presently  appear,  of  economic  advance. 
The  present  chief  magistrate.  Dr.  Augusto  B. 
Leguia,  was  elected  in  September,  1908,  for  the 
usual  term  of  four  years. 

When  the  writer  was  in  Lima  in  November  of 
1910  he  was  accorded  an  interview  with  the  Presi- 
dent, a  man  of  much  quiet  determination  and 
energy,  whose  courage  in  a  critical  moment  con- 
quered the  sympathies  of  many  among  his  enemies, 


250  THE   TEN   REPUBLICS 

to  whom  he  has  shown  no  particular  malice.  In 
external  affairs,  too,  his  attitude  is  pacific,  and 
alluding  to  the  possibility  of  a  settlement  by  force 
of  arms  of  the  boundary  dispute  with  Ecuador, 
President  Leguia  declared  that  Peru  did  not  want 
war,  and  would  do  all  in  her  power  to  avert  it. 

Peru  is  bounded  on  the  west  by  the  Pacific 
Ocean,  on  the  north  by  Ecuador  and  Colombia,  on 
the  north-east  by  Brazil,  and  on  the  east  and  south 
by  Bolivia  and  Chile.  Her  coast-line,  as  recognized 
by  Ecuador  and  Chile,  extends  from  imme- 
diately south  of  the  Guayas  estuary  to  the  outlet  of 
the  river  Sama,  but  her  various  boundary  disputes 
prevent  exact  definition  of  her  geographical  posi- 
tion and  area.  If  the  department  of  Loreto,  of 
which  the  greater  part  is  claimed  by  Ecuador,  be 
considered  entirely  Peruvian,  and  the  Tarapaca, 
Tacna,  and  Arica  territory,  which  Chile  is  likely 
to  retain,  be  omitted  from  the  official  estimates,  her 
total  area  is  approximately  660,000  square  miles. 

The  physical  characteristics  of  the  country  differ 
little  from  those  of  other  Andean  republics.  Peru 
is  divided  naturally  into  three  zones  :  the  coastal 
region,  an  almost  rainless  desert,  varying  in  width 
from  fifty  to  one  hundred  miles,  crossed  at  con- 
siderable intervals  by  short,  unnavigable  rivers 
which  descend  from  the  western  Cordillera,  and 
whose  course  towards  the  Pacific  lies  through  thefer- 
tile  but  circumscribed  valleys  which  they  water,  and 
which  are  the  sites  of  most  of  the  coastal  towns  ; 
the  Andean  region,  which  covers  more  than  one- 


PERU  251 

fourth  of  the  entire  territory,  and  which  itself  may 
be  divided  into  cold  and  barren  tablelands,  tem- 
perate uplands,  and  hot  ravines  or  gorges ;  and 
the  uiojitanay  which  begins  east  of  the  eastern 
Cordillera,  and  extends  to  the  Brazilian  and 
Bolivian  frontiers,  a  region  of  luxuriant  tropical 
vegetation,  rich  in  timber,  valuable  plants  and 
rubber,  and  watered  by  several  great  rivers  with 
innumerable  tributaries. 

This  varied  territory  is  politically  divided  into 
twenty  Departments  and  two  Littoral  Provinces, 
subdivided  into  provinces  and  districts. 

The  population  of  Peru  is  estimated  at  about 
3,600,000  inhabitants,  of  which  15  per  cent,  are 
whites,  of  Spanish  origin,  50  per  cent.  Indians, 
31  i  per  cent,  of  the  mestizo  class,  2  per  cent. 
Africans,  and  \\  per  cent.  Chinese  and  Japanese. 

Lima,  the  capital  of  the  Republic,  a  city  of 
160,000  inhabitants,  lies  a  few  miles  inland  from 
Callao.  It  is  a  fine  old  city,  with  many  architec- 
tural marks  of  its  early  Spanish  origin  and  fewer 
signs  of  modern  progress  than  are  to  be  noted  in 
some  South  American  capitals.  Its  importance  as 
an  educational  and  literary  centre  has  already  been 
referred  to. 

The  Constitution  of  Peru  dates  from  i860,  and 
administrationis  based  upon  the  inter-independence 
of  the  Legislative,  Executive  and  Judicial  govern- 
ing bodies.  The  President,  elected  by  direct 
popular  vote  for  a  term  of  four  years,  is  assisted 
by   six   Secretaries,    for    Home,  State,  War  and 


252  THE   TEN    REPUBLICS 

Marine,  Finance  and  Commerce,  Justice,  and 
Public  Works  respectively.  Congress  consists  of 
two  Chambers,  the  Senate  and'  the  Chamber  of 
Deputies,  whose  members  are  elected  for  a  term 
of  six  years  by  direct  vote. 

Peru's  sources  of  mineral  wealth  are  as  numerous 
and  diverse  as  those  of  any  Latin-American  Re- 
public, with  the  possible  exception  of  Bolivia, 
which  seems  to  have  a  monopoly  of  the  tin  deposits. 
The  Cerro  de  Pasco,  in  the  department  of  Juni'n, 
is  the  centre  of  the  principal  mining  district,  and 
within  a  considerable  radius  of  the  celebrated  hill 
the  earth  is  richly  seamed  with  copper,  silver, 
gold  and  many  other  precious  metals,  including 
the  quite  recently  discovered  vanadium.  As  usual, 
the  minerals  are  found  chiefly  in  the  Andes  region. 
The  department  of  Puno  yields  most  of  the  gold, 
though  the  streams  which  flow  into  the  Pacific, 
especially  in  the  southern  departments  of  lea  and 
Arequipa,  bring  down  auriferous  sands  from  the 
mountains,  and  gold  is  also  found  in  districts  of 
the  moiitana.  Silver  and  lead  occur  throughout 
the  Andean  region,  and  copper  abounds  in  the 
Cerro  de  Pasco  neighbourhood,  and  in  Yauli  and 
other  centres.  In  the  department  of  Huancavelica 
are  numerous  deposits  of  quicksilver,  especially  in 
the  vicinity  of  the  famous  Santa  Barbara  mine, 
which  has  been  worked  since  Colonial  times.  The 
northern  coastal  department  of  Piura  produces 
vanadium,  sulphur  and  petroleum,  of  which  latter 
there   are   vast   deposits    in    lea   and    Puno,   and 


PERU  253 

around  Lake  Titicaca.  It  is  calculated  that 
throughout  the  Republic  there  are  nearly  seven 
hundred  petroleum  wells  working.  They  are  at 
present  mostly  in  the  Zorritos  and  Negritos  dis- 
tricts, but  discoveries  are  being  made  in  many 
other  regions,  and  indicate  an  extraordinary  abun- 
dance of  this  oil  in  Peru.  Anthracite  and  pit  coal  of 
good  quality  occur  in  the  departments  of  Cajamarca, 
Ancachs  (where,  around  Tablones,  there  is  an  out- 
crop eighteen  miles  in  length),  Junin,  Arequipa, 
Puno  and  Moquegua  and  elsewhere,  and  the  de- 
posits of  this  mineral  may  shortly  solve  for  Peru  the 
fuel  problem  which  harasses  all  South  America. 

From  the  groups  of  rocky  islands  in  the  Pacific, 
where  rain  seldom  falls,  much  guano  is  still 
extracted ;  but  this  product  has  not  recently 
figured  so  prominently  among  the  exports  for  the 
reason  that  the  guano  from  all  the  islands  south 
of  Callao,  with  one  exception,  is  now  worked  by 
a  native  company  which  has  contracted  to  supply 
Peruvian  agriculturists  only,^  and  also  because  a 
close  season  of  six  months  in  the  year  has  been 
established  for  the  industry.  The  richest  beds  of 
guano  at  present  are  on  the  two  groups  of  Lobos 
Islands,  the  Ballestas,  and  Macabi  Island. 

It  is  to  be  regretted  that  the  statistics  published 
do  not  make  clear  the  value  of  the  various  minerals 
exported  during  1909.  We  know  that  of  the 
country's  entire  exportation  of  ;^6, 134,374,  wool, 

*  During-  1910  Peruvian  agriculturists  took  nearly  25,000  tons 
of  guano  for  their  various  cultivations. 


254  THE   TEN    REPUBLICS 

cotton,  sugar,  cocaine  and  hides  represented 
about  half,  or  ;^3, 050,950,  but  of  the  balance, 
;^3,o83,424,  we  have  only  been  able  to  obtain 
from  El  Diarioy  a  Lima  journal,  details  for  the 
first  six  months  of  1909  compared  with  a  similar 
period  in  1908,  which  follow  : — 


1909 

1908 

£ 

£ 

Minerals     . 

658,421 

856,226 

1  Rubber       . 

183,310 

173,944 

Crude  Petroleum 

56,448 

25,602 

Rice 

23,023 

31,337 

1  Cocoa 

7,643 

11,903 

Alcohol 

3,741 

7,474 

The  chief  product  of  the  vegetable  kingdom  is 
the  rubber  of  the  montana^  which  has  for  some 
years  occupied  second  place  as  an  export.  The 
rubber  districts  are  the  huge  department  of 
Loreto  and  the  northern  part  of  the  department  of 
Cuzco,  where  the  gathering  and  shipping  of  hevea 
and  caucho  occupies  practically  the  whole  of  the 
population.  In  spite  of  the  fact  that  the  1910 
season  was  particularly  rainy  and  unfavourable, 
nearly  2300  tons  of  rubber  and  caucho  were 
exported  during  that  year.  There  are  still  great 
tracts  of  virgin  forest  in  Loreto  which  must  con- 
tain an  abundance  of  rubber  trees,  and  it  is  there- 
fore no  matter  for  surprise  that,  except  by  the 
Peruvian  Corporation  at  Perene  Colony,  no  plant- 
ing is  done.  In  December,  1909,  new  and  wel- 
come laws  as  to  real  estate  were  issued  from  Lima, 

^  The  bulk  of  the  rubber  exports  and  the  greater  part  of  the 
cocoa  would  be  shipped  during  the  latter  half  of  the  year. 


PERU  255 

as  a  result  of  which  private  individuals  may  now 
acquire  definite  titles  to  rubber  and  other  lands  in 
perpetuity.  In  the  first  six  months  of  1910  over 
1,300,000  acres  of  lands  were  granted,  chiefly  to 
foreigners. 

From  the  department  of  Loreto,  in  1910,  pro- 
ducts to  the  value  of  over  ^^1,000,000  were  shipped, 
including,  besides  rubber,  53,300  tons  of  vegetable 
ivory,  some  hides  and  skins,  and  a  little  raw 
cotton.  The  imports,  goods  of  every  description, 
since  the  only  manufacturing  industry  in  the 
region  is  the  weaving  of  '*  Chile  "  hats,  amounted 
to  about  the  same  figure. 

Loreto  is  here  mentioned  at  some  little  length 
for  various  reasons.  Upon  its  capital,  the  port  of 
Iquitos  on  the  Amazon,  many  large  and  freely 
navigable  rivers  converge,  amongst  them  the 
immense  Ucayali,  and  from  Iquitos,  at  all  times  of 
the  year,  the  Atlantic  coast  is  reached  in  about  a 
week  without  trans-shipment,  by  ocean  vessels  sail- 
ing to  Europe  and  the  United  States.^  Then  the 
projected  railway  from  Paita  on  the  Pacific  coast 
has  Iquitos  as  its  objective  point,  though  the  exact 
route  is  not  settled  at  the  moment  of  writing. 
Again,  the  department  has  an  export  trade  which 
may,  in  any  especially  favourable  year,  become 
the  first  in  importance  of  the  whole  country  ;  and, 

^  Nearly  the  whole  of  the  carrying  trade  to  and  from  Iquitos  is 
done  by  the  Iquitos  S.S.  Co.,  a  British  concern.  In  1910, 
nineteen  of  the  Company's  vessels  entered  and  cleared,  eight 
from  New  York  with  5392  tons  of  cargo,  and  eleven  from  the 
United  Kingdom  with  14,384  tons. 


256  THE   TEN    REPUBLICS 

finally,  in  the  event  of  Ecuador  agreeing  to  submit 
her  boundary  dispute  to  arbitration  and  gaining 
all  that  she  claims  (which  it  must  be  admitted 
is  improbable),  a  vast  area  north  of  the  middle  of 
the  Amazon,  including  the  port  of  Iquitos,  would 
pass  from  Peru's  possession  into  that  of  her 
northern  neighbour. 

On  the  coast  excellent  and  very  important  crops 
of  cotton  and  sugar  are  raised  to  quite  a  large 
extent  by  irrigation,  which,  discounting  the  initial 
cost,  has  some  advantages  over  the  natural  means. 
The  chief  producing  centres,  however,  are  still  the 
well-watered  alluvial  valleys,  and  in  the  Piura, 
Lechura,  Catacaos,  La  Chira,  lea,  Nazca  and 
Moquegua  valleys  cotton  in  particular  acquires  a 
growth  and  a  quality  unequalled  anywhere  in  the 
world.  The  indigenous  plant  (gossypium  perii- 
vianum)  which  grows  in  the  four  first-mentioned 
districts,  has  a  fibre  closely  resembling  wool,  and 
is  used  in  the  manufacture  of  woollen  goods  in 
England.  It  grows  only  in  Peru,  and  is  quoted 
in  British  markets  at  an  average  of  ten  per  cent, 
above  the  price  of  any  other  quality.  The  pro- 
duction per  acre  of  the  '^  upland  "  variety  (484  lb.) 
is  greater  than  that  of  the  best  cotton  lands  in 
Egypt,  and  consequently  in  the  world.  Extension 
of  the  irrigation  system  must  mean  a  correspond- 
ing increase  in  the  exportation,  which  in  seven 
years  (1903-9)  has  more  than  quadrupled  in  value. 

Nearly  a  quarter  of  a  million  acres  of  land  on 
the   coast   are  under  sugar-cane,  which  soil  and 


PERU  257 

climate  combine  to  develop  to  extraordinary 
dimensions  and  productivity.  The  Chilian  re- 
fineries depend  largely  on  Peruvian  raw  sugar, 
though  much  is  taken  by  England  at  relatively 
high  prices.  The  following  table  will  show  the 
recent  progress  of  the  two  exports  above-men- 
tioned : — 

1907.  1909. 

Tons.  Value.  Tons.  Value. 

^  ^  ^ 

Cotton       .       24,527     516,256  33,727     1,245,415 

Sugar        .     110,615     827,298  125,395     1,159,972 

Good  crops  of  rice  are  also  raised  on  the  coast, 
irrigation  being  employed  with  conspicuous  suc- 
cess, and  it  may  be  said  that  within  the  last  few 
years  Perii  has  ceased  to  import  and  commenced 
to  export  this  commodity. 

The  animal  kingdom  contributes  in  consider- 
able measure  to  Peru's  export  trade.  The  rearing 
of  sheep  and  cattle  is  a  growing  industry  in 
Junin,  Ancachs,  Cuzco,  Cajamarca  and  other 
districts  of  the  plateau  where  there  is  good  pas- 
turage. 

The  total  imports  into  Peru  during  1909 
amounted  to  ;^4,356, 132,  and  in  order  of  import- 
ance the  principal  items  were :  iron  and  other 
metal  ware,  cotton  manufactures,  machinery, 
woollen  goods,  wheat  and  coal.  It  would  appear 
that  among  the  exporters  to  Peru  England  was 
first,  the  United  States  second  and  Germany  third. 
As  a  purchaser  of  Peruvian  products  Great  Britain 
easily  occupies  first  place,  taking  most  of  the 
s 


258  THE   TEN    REPUBLICS 

cotton,  wool  and  guano,  and  much  of  the  minerals 
and  rubber.  The  United  States,  Chile,  France 
and  Germany  follow  in  the  order  named,  but 
Belgium  is  making  a  strong  bid  for  fourth  or  even 
third  place. 

Peruvian  manufactures  are  not  of  great  import- 
ance, but  there  are  five  fairly  prosperous  cotton 
manufactories  in  Lima,  and  there  is  one  in  lea  and 
another  near  Arequipa.  In  various  parts  of  the 
west  are  flour-mills,  match  factories,  breweries, 
biscuit  and  lard  factories,  a  few  tanneries  and 
cotton-seed  oil  factories,  etc. 

There  are  half-a-dozen  establishments  for  the 
preparation  of  wool,  but  their  output  is  insuffi- 
cient even  for  the  local  demand.  The  manufacture 
of  hats,  which  Peruvians  claim  to  have  originated 
in  Moyobamba,  in  the  department  of  Loreto, 
keeps  a  considerable  number  of  hands  employed, 
and  the  distilling  of  alcohol  from  sugar  cane  is 
a  thriving  business.  Cigar  and  cigarette  making 
and  the  manufacture  of  cocaine  and  wines  and 
spirits  are  industries  of  some  importance,  while 
for  the  generating  of  electric  light  and  power  from 
the  fall  of  the  Rimac,  a  company  known  as  the 
Electric  Trust,  operates  with  a  capital  of  over 
;^2, 000,000,  working  the  electric  railways  of 
Callao  and  Chorrillos  and  the  Lima  tramways. 

The  national  revenues  are  derived,  as  to  about 
fifty  per  cent.,  from  import  and  export  duties. 
There  are  heavy  taxes  on  alcohol,  sugar,  tobacco, 
and  matches,   and  others  include  a  small  tax  on 


PERU  259 

active  capital.  In  addition  to  these  sources  there 
are  the  Government  monopolies  of  salt,  opium, 
and,  since  1909,  tobacco.  The  salt  monopoly 
yielded,  in  1909,  i^93,575,  and  that  of  opium 
;^22,7i8.  The  Government  entrusts  the  manage- 
ment of  the  opium  and  tobacco  monopolies  and 
the  collection  of  most  of  the  taxes  to  a  National 
Tax-collecting  Company,  which  receives  one  per 
cent,  of  the  total  product  for  its  services  ;  and  the 
salt  monopoly  is  conducted  by  a  National  Salt 
Company  on  similar  lines.  These  rather  unusual 
arrangements  are  said  to  work  very  well. 

The  national  revenue  in  1909  was  ;^2,5i8,o62, 
and  the  net  deficit  ;6^343,220.  No  details  of  the 
expenditure  can  be  given,  but  the  service  of  the 
public  debt  has  in  the  last  few  years  been  scrupu- 
lously covered  and  the  country's  credit  stands 
reasonably  high  in  Europe.  Peru  was  able  in 
June  of  last  year  to  arrange  in  France  a  loan 
of  ;6^i, 200,000  at  5 J  per  cent.,  with  the  proceeds  of 
which  she  cancelled  bank  loans  amounting  to 
;6^5oo,ooo  and  the  balance  of  another,  all  bearing 
six  to  eight  per  cent  interest. 

The  progress  of  Peruvian  railways,  of  most  of 
which  the  Peruvian  Corporation  is  the  usufruct- 
uary, has  not  been  particularly  satisfactory. 
Lack  of  funds  has  recently  prevented  active  work 
on  the  Huancayo-Ayacucho  line,  which  is  con- 
structed only  for  some  twenty  miles,  and  progress 
with  the  Lima-Huacho  line  has  also  been  slow. 
The   Ilo-Moquegua  and   Tumbes-Puerto   Pizarro 


26o  THE   TEN   REPUBLICS 

lines  are  reported  to  be  working  satisfactorily  and 
economically.  The  projected  line  from  Paita  to 
Iquitos,  whose  importance  to  Peru  it  is  difficult  to 
exaggerate,  will  cross  the  Andes  at  Molino  and 
Guayabo,  employing  the  rack  system  for  a  stretch 
of  twenty-five  miles.  Another  line  practically 
decided  upon  is  that  which  will  leave  Goyaris- 
quisga,  a  little  north  of  Cerro  de  Pasco,  and  run 
east  and  north  for  270  miles  to  Pucalpa  on  the 
Ucayali  river,  joining  the  capital  with  the  unex- 
ploited  part  of  Loreto  ;  while  amongst  other  enter- 
prises under  consideration  are  the  Santa  Ana- 
Cuzco  line  and  the  railway  from  a  point  on  the 
Juliaca-Cuzco  line  to  one  of  the  navigable  rivers 
in  the  south-east,  which  the  Peruvian  Corporation 
is  at  present  studying. 

Mention  of  Peruvian  railways  would  be  far 
from  complete  without  a  brief  allusion  to  the 
Oroya  railroad,  one  of  the  most  remarkable  lines 
in  the  world  and  a  combination  of  many  feats  of 
engineering.  Originally  commenced  at  Callao  in 
1869,  work  on  the  line  was  suspended  in  1877,  on 
the  death  of  its  constructor,  Mr.  Henry  Meiggs. 
Not  until  1891  did  the  Peruvian  Corporation  take 
over  the  railroad,  which  was  then  actively  pushed 
forward,  reaching  Oroya  in  1893.  There  are 
branches  to  Ancon  and  Morococha,  and  a  private 
line  runs  from  Oroya  northwards  to  the  Cerro  de 
Pasco  mining  district.  In  its  course  of  227^  miles 
the  main  line  reaches  an  altitude,  at  Ticlio,  of 
15,665  feet,  and  a  trip  from  Callao  to  Oroya  pro- 


PERU  261 

vides  a  safe  and  comfortable  method  of  enjoying 
the  unsurpassed  Andine  scenery  of  Peru. 

Education  in  Peru  is  under  the  control  of  the 
General  Office  of  Public  Instruction,  and  elemen- 
tary education  is  both  compulsory  and  free,  being 
provided  by  fiscal  or  municipal  schools  to  the 
number  of  2159,  attended  by  some  154,000 
scholars.  Practical  instruction  is  very  actively 
promoted  by  a  system  of  general  scholarships 
at  the  National  School  of  Agriculture,  and  in 
Lima  the  School  of  Manual  Training  and  Physical 
Culture  is  doing  good  work.  The  ancient  and 
excellent  San  Marcos  University  alone  would  con- 
stitute Lima  a  seat  of  learning,  and  there  are 
universities  at  Arequipa,  Cuzco  and  Trujillo. 

Labour  in  Peru  is  scarce,  especially  in  the 
rubber  districts.  The  Republic  has,  or  will  have 
shortly,  to  face  the  problem  arising  from  the 
immigration  of  Japanese  and  Chinese  labourers, 
of  which  there  are  some  10,000  in  the  country. 
Peru  sees  in  these  the  nucleus  of  a  yellow 
peril,  and  the  industrious  Celestials,  especially 
when  they  become  successful  shopkeepers,  are  not 
popular,  though  the  Japanese  are  welcomed  on  the 
sugar  and  rubber  estates.  The  efforts  of  the 
Government  are  now  in  the  direction  of  attracting 
European  immigration  of  good  class. 


CHAPTER   XIII 
URUGUAY 

THE  territory  which  now  is  occupied  without 
dispute  by  the  Oriental  RepubHc  of  Uruguay 
was  wrested  by  the  Spaniards,  with  long  and  pain- 
ful effort,  from  the  hardiest,  fiercest,  and  most 
courageous  of  the  South  American  aboriginal 
tribes.  Time  and  again  did  the  indomitable 
Cliarruas  defeat  in  pitched  battle  the  veterans 
which  Spain  sent  against  them  ;  but  they  could  not 
be  expected  to  stand  for  very  long  before  the  skill 
and  daring  which  had  conquered  the  Incas  and 
the  Aztecs,  and  at  last  the  few  which  had  survived 
the  constant  struggle  disappeared  into  the  forests 
of  mid-Brazil. 

The  history  of  Uruguay  in  Colonial  times  is  the 
history  of  all  Latin  America  in  the  same  period. 
In  1810  she  declared  her  independence  with  the 
rest,  and  in  18 14  she  was  free,  and  part  of  the 
Argentine  Federation.  In  less  than  a  year  she 
grew  restive  and  seceded,  constituting  herself  a 
sovereign  and  independent  state  with  a  Govern- 
ment at  Montevideo.  But  in  1821  Brazil  annexed 
her,  after  much  fighting,  and  she  became  the  Pro- 
vincia  Cis-platina.     Four  years  later  a  revolution 

262 


URUGUAY  263 

in  the  new  State,  instigated  and  assisted  from 
Buenos  Aires,  resulted  in  war  between  Brazil  and 
Argentina,  and  upon  the  cessation  of  hostilities 
Uruguay  was  formally  and  finally  recognized  as 
an  independent  State. 

For  a  few  years  there  was  peace  in  the  Republic, 
but  from  1839  until  quite  recent  times  the  guerrero 
spirit  of  the  Uruguayans  has  been  evident  in  the 
intermittent  civil  wars,  the  longest  period  of 
internal  peace  coinciding  with  the  seven  years' 
war  with  Paraguay.  Since  1904  the  people  have 
been  more  occupied  with  the  commercial  develop- 
ment of  the  country,  but,  as  was  shown  in  October 
last,  the  ancient  intolerance  of  government  has 
not  entirely  abated. 

Previous  to  1891  the  financial  history  of  the 
Republic  was  a  chequered  one,  but  since  that  date, 
thanks  to  Presidents  Cuestas,  Batlle  y  Ordoiiez, 
and  Williman,  the  country's  foreign  obligations 
have  been  scrupulously  and  punctually  met,  and 
of  all  the  Latin-American  States  none  enjoys  higher 
credit  than  Uruguay,  while,  area  for  area,  none 
can  boast  greater  prosperity. 

Uruguay,  the  smallest  of  the  Latin-American 
republics,  with  an  area  rather  less  than  that  of 
England,  is  bounded  on  the  north  and  east  by 
Brazil,  on  the  west  by  Argentina,  and  on  the 
south  by  the  Rio  de  la  Plata  and  the  Atlantic. 

Physiographically,  its  territory  consists  for  the 
most  part  of  undulating  plains,  traversed  by  short 
ranges  of  rocky  mountains  following  no  particular 


264 


THE   TEN   REPUBLICS 


direction  and  of  no  very  great  height,  and  inter- 
sected by  some  large  and  many  small  rivers.  Of 
these  latter  few  are  navigable,  and  of  the  larger 
streams  the  Uruguay  has  regularly  to  be  dredged 


:=      "  -    Coiistriirtion, 

•«.  Projected  JiaiLwat/s 


in  certain  parts,  while  the  Rio  Negro  is  difficult  in 
time  of  drought.  In  the  north  are  mineral  deposits 
of  some  importance,  as  yet  scarcely  exploited,  but 
in  the  centre  and  south  the  natural  products  of 
the  country  spring  entirely  from  the  fertility  of  the 
soil,  which  provides  some  of  the  best  grazing  in 
South  America, 


URUGUAY  265 

This  territory  is  divided  for  the  purpose  of 
administration  into  nineteen  departments.  The 
constitution  of  Uruguay  has  remained  practically 
unchanged  for  upwards  of  eighty  years,  and,  in 
the  opinion  of  many,  it  is  the  best  of  all  South 
American  constitutions.  Half  a  century  before 
slavery  completely  vanished  from  American  soil, 
Uruguay  declared  emphatically  against  it,  and  this 
declaration  was  supplemented  a  little  later  by  an 
enactment  conferring  freedom  upon  the  few  slaves 
still  in  the  country.  Freedom  of  religion  was  or- 
dained, and  there  is  no  censorship  of  the  public 
press.  There  is  no  imprisonment  for  debt.  Con- 
scription is  unknown,  and  if  any  person  is  called 
upon  to  lodge  troops  in  time  of  war,  the  Senate 
enacts  that  he  shall  be  suitably  indemnified. 

Legislative  power  is  vested  in  two  Chambers, 
viz.  a  Chamber  of  Deputies  (nominated  by  direct 
election)  and  a  Chamber  of  Senators.  These 
Chambers  elect  a  President  of  the  Republic  every 
four  years,  and  they  also  appoint  the  magistrates 
of  the  High  Court.  It  may  be  mentioned,  as 
showing  recent  financial  and  economical  progress, 
that  of  the  four  financial  years  1906-9  three  have 
closed  with  a  surplus  of  over  ^^425, 000.  The 
amount  sanctioned  as  "budget  expenditure  "  for 
1908-9  was  ^^"4,404, 113,  whereof  i^2, 187,000  was 
allocated  to  "national  obligations"  and  the  rest 
to  the  State  administration. 

About  forty-five  per  cent.,  therefore,  of  the 
country's   annual    revenue,    mainly  derived   from 


266  THE   TEN   REPUBLICS 

heavy  import  duties,  goes  to  the  payment  of  the 
debt,  which  commenced  in  i860  with  a  modest 
;^58,ooo.  The  following  figures  illustrate  its  rapid 
increase  after  that  date  : — 

£ 
1880      ....     10,320,227 

1890      ....     19,116,776 

1900      ....     26,703,607 

1909       ....     27,692,995 

This  sum  has  since  been  made  up  to  nearly 
thirty  millions  by  the  floating  of  a  Public  Works 
Loan  of  ;^i, 270,000.  It  is  a  truly  immense  Public 
Debt  for  a  young  and  small  country  of  little 
more  than  a  million  inhabitants,  working  out  at 
£2^  IIS.  lod.  per  capita^  although  there  is  the 
satisfactory  set-off  of  the  Republic's  extraordinary 
prosperity,  which  was  never  greater  than  in  the 
present  year. 

Last  year  Uruguay  could  boast  of  nearly  fifteen 
hundred  miles  of  railway  in  active  operation,  all 
British  owned,  and  830  miles  of  it  ''guaranteed" 
or  subsidized  by  the  State.  And  since  the  working 
of  its  railroads  affords  an  indication  of  a  country's 
prosperity  it  may  be  mentioned  that  for  the  finan- 
cial year  1909-10  Uruguayan  railways  showed  a 
total  profit  of  ;^7 13,000.  Fifty-three  miles  of  line 
were  added  in  the  same  period,  the  eastern  exten- 
sion of  the  Central  Railway,  which  runs  north  and 
west  from  Montevideo,  being  completed  to  its 
terminus,  Melo  ;  but  a  much  more  ambitious  pro- 


URUGUAY  267 

gramme  has  been  authorized  for  this  year  (191 1). 
On  the  Durazno-Trinidad  section  of  the  Pan- 
American  railway  work  had  already  begun  in 
April,  and  the  Puerto  Sauce-Trinidad  section  was 
to  be  commenced  immediately  and  hurried  for- 
ward at  all  speed.  This  line  will  open  up  the 
departments  of  Flores,  Durazno  and  Colonia. 
Then  the  construction  of  the  line  from  Treinta  y 
Tres  to  Corrales  is  proceeding  apace,  with  two 
thousand  men  at  work  on  fifteen  miles  of  road. 
From  Pan  de  Azucar  a  line  is  being  built  which 
will  greatly  assist  an  important  agricultural 
region,  while  the  cities  of  Canelones  and  San  Jose 
are  to  be  linked  by  rail  as  soon  as  possible.  Rio 
de  Janeiro  and  Montevideo  have  recently  been 
connected  by  extensions  in  Brazil,  but  for  some 
time  the  sea-voyage  will  be  the  shorter  route. 

No  less  than  ^^50,000,000  of  British  capital  is 
locked  up  in  Uruguay,  a  sum  in  excess  of  that 
invested  in  any  South  American  country  save  the 
great  Republics  of  Brazil  and  Argentina,  and  it 
must  be  remembered  that  the  ^'Oriental  Re- 
public "  covers  only  72,000  square  miles.  Of  this 
^^50,000,000  it  may  be  roughly  estimated  that  some 
i^27, 000,000  is  in  Government  stocks,  ^13,000,000 
in  railroad  enterprise,  perhaps  ;^5, 000, 000  in  other 
joint  stock  concerns,  and  the  remainder  in  insur- 
ance, shipping,  etc. 

It  may  perhaps  best  serve  to  illustrate  this  most 
interesting  country's  expansion  of  trade  by  setting 
out  at  length  the  figures  covering  the  amount  of 


268  THE   TEN   REPUBLICS 

exports  and  imports  during  the  last  seven  years 
for  which  figures  are  published  : — 

Imports.  Exports. 

£  £ 

1903  5»34i>276  7,950,851 

1904  4,514,255  8,188,298 

1905  6,548,511  6,554,255 

1906  7>330)85i  7,106,808 

1907  7,972,492  7,418,814 

1908  7,969,396  8,562,977 

1909  7,905,694  9,584,478 

In  1910  the  total  importation  and  exportation 
amounted  together  to  ^17,614,235,  a  trade  record 
which  the  present  year,  however,  promises  to 
surpass. 

The  following  figures  show  the  details  of  the 
export  trade  of  the  country  during  the  last  three 
years  for  which  they  can  be  obtained  : — 


1907 

1908 

1909 

£ 

£ 

£ 

Live  stock  and  cattle 

products,     including 

meat,  wool  and  hides 

6,733,715 

7,751,950 

8,540,027 

Flour,  Fodder,  Meat, 

etc. 

333,097 

448,957 

609,101 

Minerals     (mainly 

stone  and  sand) 

245,380 

247,458 

304,953 

Ship's    provisions    in 

general 

96,269 

93,426 

113,365 

Miscellaneous 

10,353 

21,186 

17,032 

7,418,814 

8,562,977 

9,584,478 

Of  Uruguay's  exports  in  1900  France  took  nearly 
a  fifth  part.  Next  in  order  of  importance  as  con- 
sumers were   Germany  and   Belgium  (who  were 


URUGUAY  269 

about  equal);  Brazil,  the  United  States  and  Great 
Britain,  whose  share  consisted  of  meat,  meat  ex- 
tracts, and  wool. 

Uruguay's  imports  consist  principally  of  textiles, 
food-stuffs,  coal,  and  iron,  timber,  stone  and  glass 
manufactures.  Her  wants  are  chiefly  supplied  by 
Great  Britain,  whose  exports  to  Uruguay  in  1909 
amounted  to  i^2, 418,005,  or  roughly  one-third,  a 
level  which  has  been  maintained  for  a  number  of 
years.  Germany  contributed  in  1907  ^^1,293,531, 
and  in  1908  ;6^i, 324,861. 

A  rough  estimate  of  the  live  stock  reared 
annually  on  the  plains  of  Uruguay  works  out  at 
20,000,000  sheep,  7,000,000  cattle,  600,000  horses 
and  100,000  hogs.  Apart  from  the  live  stock, 
therefore,  the  trade  in  hides,  skins  and  wool  is 
considerable.  Most  of  the  raw  wool,  amounting 
to  100,000  bales  the  year  before  last,  is  taken  by 
France.  There  are  twenty  ^^saladeros"  for  the 
preparation  of  jerked  beef  scattered  through  the 
pastoral  country,  and  one  establishment  only  de- 
voted to  the  frozen  meat  industry.  A  big  and 
welcome  impetus  has  been  given  to  the  live  stock 
trade  by  the  cancelling  of  the  vexatious  duties  on 
cattle,  mules,  horses,  sheep  and  goats  formerly 
imposed  by  the  Government  of  Brazil.  Of  the 
many  meat-packing  houses  the  most  prominent 
are  those  of  the  familiar  ''  Liebig's  Extract."  Nor 
must  the  very  considerable  "line"  in  various 
cereals  be  overlooked,  for  unquestionably  it  has 
a  great  future.    In  a  recent  year  as  much  as  34,000 


270  THE   TEN   REPUBLICS 

tons  of  excellent  wheat  was  shipped  from    Monte- 
video in  addition  to  bran,  flour,  corn  and  barley. 

At  present  Uruguay's  export  trade  indicates 
little  diversity  of  natural  sources  of  wealth,  about 
nine-tenths  of  the  total  being  live  stock  and  cattle 
products.  As  to  the  importance  of  the  mineral 
deposits  in  the  north  and  in  the  centre  opinions 
are  conflicting,  and  the  results  of  the  coal  and  gold 
mining  begun  last  year  have  not  transpired.  Petro- 
leum is  known  to  exist,  but  no  effort  appears  to 
have  been  made  to  develop  it  commercially,  though 
cheap  fuel  would  be  a  boon  to  the  community  ; 
and  such  of  the  country's  exports  as  are  officially 
catalogued  as  minerals  consist  for  the  most  part  of 
stone  and  sand.  It  would  therefore  seem  that 
Uruguay  must  rely  for  her  prosperity  upon  her 
cattle-raising  and  agricultural  industries,  and  of 
recent  years  much  has  been  done  in  the  direction 
of  improving  the  strain  of  her  live  stock  and  the 
prevention  or  stamping  out  of  epidemics.  English 
prize  cattle  and  kine  have  been  largely  introduced, 
with  valuable  results,  and  dairy  farming  is  on  the 
increase.  The  tilling  of  the  soil  is  not  possible, 
or  rather,  profitable,  in  all  parts  of  the  country, 
but  where  it  is  practised  the  yield  is  abundant.  A 
very  little  rubber  is  found. 

In  his  valedictory  Presidential  message  to  the 
Chambers,  delivered  in  February,  191 1,  Dr. 
Williman  laid  emphasis  on  the  ''  exact  and  hon- 
ourable fulfilment  of  the  country's  obligations," 
and  on   the   definite  establishment  of  its  foreign 


URUGUAY  271 

credit.  He  mentioned  that  within  four  years  up- 
wards of  ;^3, 500,000  had  been  expended  on  public 
works,  and  was  able  to  conclude  with  the  predic- 
tion of  days  of  assured  peace  and  plenty  for  the 
Republic.  In  a  conversation  which  the  writer  had 
with  President  Williman  he  evinced  as  great  an 
interest  in  the  moral  and  educational  progress  of 
his  people  as  in  their  material  welfare. 

The  progressive  Uruguayan  Government  has  for 
some  long  time  past  provided  for  the  free  educa- 
tion of  children.  During  Dr.  Williman's  term  as 
President  no  fewer  than  150  schools  were  simul- 
taneously established  throughout  the  country,  and 
before  his  term  of  office  came  to  an  end  the  number 
of  schools,  which  in  1875  had  been  190  and  in 
1908  had  reached  805,  increased  to  1000,  the 
attainment  of  this  figure  being  one  of  the  Presi- 
dent's most  cherished  ambitions.  If  recent  ad- 
vices do  not  err,  the  present  President,  Sefior 
Jose  Batlle  y  Ordoiiez,  is  even  more  enthusiastic 
for  the  spread  of  education,  for  he  proposes  to 
create  and  endow  within  a  short  period  the  extra- 
ordinary number  of  600  primary  schools,  though 
in  educational  matters  Uruguay  already  stands  not 
merely  ahead  of  any  other  South  American  state 
save  Argentina,  but  also  in  front  of  those  of  the 
Latin  countries  of  Southern  Europe. 

With  regard  to  higher  education,  Montevideo 
boasts  a  splendid  university.  In  a  great  building, 
four  storeys  high, are  contained  colleges  of  Medicine, 
Law,  Commerce,  and  Secondary  Education,  and 


272  THE   TEN   REPUBLICS 

visitors  and  savants  from  Europe  have  repeatedly 
expressed  their  opinion  that  the  University  of 
Montevideo  is  on  a  par  with  the  great  educational 
institutions  of  the  Old  World.  There  are,  in  ad- 
dition, the  Polytechnic  at  Salto,  the  ''Sandurero," 
^'  Mercedario,"and  ''Uruguayo"  at  Mercedes,  and 
other  excellent  establishments.  At  Sayagoi  also 
there  is  the  splendid  Institute  of  Agriculture. 

The  spread  of  education  may  do  much  to  dispel 
the  bitter  feeling  between  the  Colorados^  the  govern- 
ing party,  and  the  Blancos^  or,  to  give  them  the 
designation  they  have  recently  assumed,  National- 
ists. It  is  more  an  inherited  hostility  than  one 
based  on  any  wide  divergence  of  opinion,  and 
was  originally  engendered  by  the  rivalries  between 
Generals  Oribe  and  Rivera  and  their  followers, 
which  began  with  the  very  birth  of  the  republic  ; 
an  Uruguayan  of  to-day  is  a  Colorado  or  a 
Nationalist  because  his  father  was  one  or  the 
other.  As  may  be  seen,  the  strife  of  the  politicos 
has  not  fatally  hindered  the  commercial  progress 
of  the  country,  but  its  economic  advance  would 
be  more  rapid  if  the  party  in  power  could  feel  it 
safe  to  disband  a  part  of  the  large  standing  army, 
which  in  view  of  the  country's  excellent  relations 
with  its  neighbours  is  a  totally  unnecessary  and 
unfair  burden  upon  the  State.  For  Uruguay's 
boundaries  with  Argentina  are  purely  natural 
frontiers,  and  in  May  of  last  year  Brazil  and 
Uruguay  exchanged  ratifications  of  the  new 
treaty  of  limits    on    Lake    Mirim   and  the   River 


URUGUAY  273 

Yaguaron,  a  settlement  hailed  in  Uruguay  as 
an  act  of  justice  on  the  part  of  the  Brazilians 
which  will  straiten  the  bonds  of  friendship. 

Of  the  populous  centres  of  Uruguay,  the  port 
and  city  of  Montevideo  is  somewhat  disproportion- 
ately superior  in  every  way  to  the  next  most  im- 
portant towns.  It  stands  on  a  bold  headland,  the 
termination  of  the  Sierra  de  las  Animas,  a  really 
beautiful  city  with  a  mild  and  benign  climate  and 
an  almost  English  appearance.  Its  electric-tram 
system  is  probably  the  best  in  South  America, 
and  when  the  installations  now  in  progress  have 
been  completed  it  will  be  one  of  the  best  lighted 
cities  on  the  whole  continent.  Several  million 
pounds  have  quite  recently  been  expended  on  its 
embellishment,  the  improvements  including  a  new 
river-front  some  two  miles  long,  in  the  style 
the  Thames  Embankment  with  a  Rotten  Row: 
added,  a  new  and  fine  avenue,  and  the  paving 
with  asphalte  of  a  great  part  of  the  city  streets. 
It  has  the  oldest  English  club  and  one'  of  the 
largest  English  colonies  in  South  America,  and 
other  British  institutions  comprise  a  Diamond 
Jubilee  Hall,  two  churches,  and  the  Montevideo 
TimeSy  edited  by  an  independent  and  outspoken 
Englishman,  Mr.  Denstone.  More  native  features 
of  the  capital  are  the  beauty,  grace,  and  elegance 
of  its  women. 

As  to  the  port,  though  not  naturally  affording 
good  harbourage,  the  ;^3, 000,000  and  more  spent 
since  1901  on  dredging  and  on  the  extension  of  its 

T 


ts 

W  v^ 

Of^^ 


274  THE   TEN   REPUBLICS 

eastern  and  western  breakwaters  have  placed  it  in 
the  category  of  first-class  ports.  It  has  a  com- 
manding position  on  the  Atlantic  sea-board,  and 
the  vessels  of  forty  steamship  companies,  half  of 
them  flying  the  British  flag,  enter  Montevideo  in 
the  course  of  the  year.  By  a  recent  decree 
merchant  vessels  are  treated,  with  regard  to  pro- 
visioning, as  warships,  being  permitted  to  load 
their  stores  out  of  bond  free  of  Customs  duties, 
and  this  concession  will  render  Montevideo  even 
more  attractive  as  a  port  of  call.  The  population 
of  port  and  city  exceeds  300,000. 

Of  the  other  cities  and  towns  such  as  Colonia, 
Paysandu,  Mercedes  and  Salto  we  have  no  space 
to  speak.  They  are  all  given  over  to  the  meat 
industry,  and  as  a  consequence  are  less  beautiful 
than  busy.  Their  sanitation,  however,  is  carefully 
looked  after. 

The  population  of  Uruguay  is  far  from  sufficient 
for  the  needs  of  the  country.  Labour  is  scarce 
and  dear  and  the  import  tariff  renders  living 
expensive.  The  health  of  the  country  generally 
is  good,  and  the  co-efficient  of  deaths  and  births 
(forty  to  one  hundred)  very  satisfactory  as  com- 
pared with  that  of  European  countries. 

Enough  has  been  said  to  demonstrate  the  steady 
growth,  in  the  face  of  great  difficulties,  of 
the  Oriental  Republic  of  Uruguay,  and  of  her 
prospects  of  yet  greater  and  more  rapid  expansion. 
In  the  words  of  a  native  writer,  ''  The  Republic 
furnishes  a  good  example  of  those  new  peoples 


URUGUAY  275 

who,  in  their  own  right,  take  their  places  in  the 
great  congress  of  nations  dedicated  to  the  social 
good.  We  claim  brotherhood  with  all  the  states 
of  the  earth.  We  are  supported  by  our  demo- 
cratic system  of  government,  and  we  shall  advance 
by  reason  of  the  work  we  do  for  our  country,  and 
by  our  ardent  desire  for  progress,  which  will 
surely  carry  us  onwards  towards  our  goal."  And 
it  is  not  impossible  that  those  qualities  of  virility 
and  high-spiritedness  which  among  the  Uruguay- 
ans find  their  expression  in  aversion  to  authority, 
will  in  the  course  of  time  be  turned  to  the  true 
service  of  the  country  and  the  realization  of  their 
rulers'  ideals. 


CHAPTER   XIV 

VENEZUELA 

If  James  I  had  not  turned  a  deaf  ear  to  Sir 
Walter  Ralegh's  suggestions  when  that  great 
explorer  returned  from  his  voyage  up  the  Orinoco, 
Venezuela  might  have  become  one  of  the  richest 
and  most  prosperous  possessions  of  the  British 
Empire.  Ralegh  wanted  King  James  to  annex 
Venezuela  as  a  British  colony,  but  at  that  time 
the  King's  mind  was  under  the  influence  of  the 
charges  brought  against  Ralegh  by  the  Spaniards, 
whose  revenge  he  had  provoked,  and  soon  after- 
wards the  great  explorer  was  beheaded  for  high 
treason  and  his  aspirations  as  to  Venezuela  were 
buried  with  his  reputation. 

The  material  potentialities  of  the  country  are 
as  impressive  now  as  in  those  days  they  were  to 
Ralegh.  The  climate,  soil,  river  supply,  and 
the  excellence  of  its  natural  harbours  still  remain 
excellent  reasons  for  British  colonization,  in  the  un- 
political sense  of  the  word,  though  the  finer  motives 
of  restoring  peace  and  avenging  a  conquered  and 
suffering  people  that  inspired  Ralegh's  appeal  to 
his  countrymen,  happily  need  no  longer  be  urged. 

Venezuela  is  one  of  the  nearest  of  the  South 
276 


VENEZUELA 


277 


American  Republics  to  Great  Britain,  being  within 
fourteen  days'  steaming  of  the  port  of  Liverpool. 
It  occupies  the  northernmost  part  of  the  South 
American    continent,    and    is    bounded    by    the 


Atlantic  Ocean,  the  Caribbean  Sea,  Colombia, 
Brazil  and  British  Guiana.  The  country  has  an 
officially  estimated  area  of  393,976  square  miles 
and  a  population  of  2,664,241,  being  one  of  the 
most  sparsely  populated  countries  in  South 
America.  It  is  divided  into  three  distinct  geo- 
graphical zones  :  the  plains  and  river  valleys,  the 
mountain  section  and  the  dry  and  healthful  table- 
lands or  plateaux,  characteristics  which  are  found 


278  THE   TEN   REPUBLICS 

in  many  of  the  neighbouring  republics.  Behind 
the  Venezuelan  coast  range  of  mountains  lies  the 
basin  of  the  Orinoco.  This  river,  1500  miles 
long,  has  nearly  five  hundred  tributaries,  and  is 
navigable  up  from  the  ocean  for  about  1200  miles. 
For  nearly  half  its  length  it  flows  north,  and  then 
turns  almost  directly  east,  and  continues  in  this 
line  to  the  Atlantic.  Near  the  bend  of  the  Orinoco 
it  is  joined  by  the  Apure,  one  of  its  chief  tribu- 
taries, which  has  come  down  from  the  Eastern 
Cordilleras  of  Colombia  through  the  heart  of  the 
region  of  the  llanos  or  prairie  lands.  These  lands 
continue  on  to  the  east  to  the  vertex  of  the  delta 
of  the  Orinoco.  They  comprise  about  150,000 
square  miles  in  Venezuela  and  about  120,000 
square  miles  in  Colombia,  and  form  the  largest 
single  compact  area  of  high-class  natural  cattle 
pasture  in  the  world.  In  the  luxuriance  of  the 
pasturage  they  are  as  far  ahead  of  the  pampas 
lands  of  Argentina  as  these  are  ahead  of  the  short 
grass  lands  of  Kansas  or  Nebraska.  This  im- 
mense level  prairie,  thickly  carpeted  with  para 
and  guineo  grass,  growing  twice  as  high  as  broom 
sedge  on  a  neglected  Virginian  farm,  is  crossed 
and  interlaced  by  hundreds  of  rivers  flowing  into 
the  Orinoco  or  into  its  larger  tributaries,  the 
Apure,  the  Arauca,  the  Meta,  the  Vichada  and  the 
Guaviare.  From  these  rivers  spread  out  smaller 
rivers,  creeks  and  channels,  joining  one  river  to 
another,  so  that  the  whole  is  one  great  water 
mesh.     In   some  places  for  a  hundred  miles  one 


VENEZUELA  279 

must  cross  water  every  half  mile  or  less.  The 
creeks  and  channels,  when  wide  enough,  are  navi- 
gable for  launches  and  flatboats,  and  offer  the  best 
and  cheapest  possible  system  of  highways  leading 
directly  down  to  the  Orinoco  and  the  sea. 

From  the  earliest  days  of  the  Spanish  conquest 
Venezuela  has  been  famed  as  a  cattle  land.  At 
the  time  of  the  war  of  independence,  in  1812,  it 
was  estimated  that  there  were  3,000,000  head  of 
cattle  in  the  country.  The  industry  has  never 
since  been  so  flourishing.  These  natural  cattle 
lands  comprise  about  170,000,000  acres,  and  could 
easily  support  180,000,000  head  of  cattle  and  not 
be  overstocked.  In  the  past  the  industry  has 
been  much  hampered  by  Government  restrictions, 
monopolies  and  taxation,  and  the  estimates  as  to 
the  cost  of  cattle  production  in  consequence  vary 
much.  Under  the  same  favourable  conditions  as 
exist  in  Mexico,  Argentina  and  Uruguay,  the 
llanos  of  Venezuela  can  produce  cattle  ready  for 
slaughter  at  a  cost  which  ought  not  to  exceed  los. 
per  head.  Indeed,  a  company  was  formed  less 
than  two  years  ago,  which  has  started  a  refrigera- 
ting business  at  Puerto  Cabello,  and  has  made  a 
number  of  shipments  of  cattle  to  Europe,  already 
with  considerable  success. 

The  high  plateau  lands  are  the  chief  agricultural 
region,  and  are  by  far  the  richest  economically  and 
the  most  populous.  The  climate  is  for  the  most 
part  mild  and  healthy.  The  principal  objects  of 
cultivation   are  coffee,   cocoa,   sugar  cane,    maize 


28o  THE   TEN   REPUBLICS 

and  fruit.  There  are  more  than  247,000  acres  of 
coffee  plantations,  and  the  annual  export  of 
berries,  which  are  of  superior  quality,  amounts  to 
52,000  tons.  Sugar  cane  is  cultivated  more  or 
less  throughout  the  Republic,  and  the  con- 
sumption of  sugar  in  the  country  is  dependent 
upon  the  home  supply,  its  importation  being  pro- 
hibited. In  spite  of  this  absolute  protection  the 
export  of  sugar  remains  small.  This  is  due  not 
to  the  inferior  quality  of  the  cane,  but  to  defective 
methods  employed  in  refining  and  distilling.  The 
cultivation  of  maize,  which  is  one  of  the  staple 
foods  of  the  poorer  class,  hardly  produces  half  the 
quantity  required,  and  the  rest  has  to  be  imported 
from  North  America.  It  should  be  noted,  how- 
ever, that  in  the  districts  where  this  crop  is  culti- 
vated seriously  as  many  as  four  harvests  are 
gathered  in  a  year. 

This  plateau  district  further  produces,  but  not  for 
export,  a  considerable  quantity  of  fruit.  Finally 
may  be  mentioned  the  export  of  8000  tons  annually 
ofwoodforbuilding,  cabinetwork,  and  dye-making. 

Apart  from  theundeveloped  riches  of  the  country, 
the  sources  of  which,  with  regard  to  mineral  wealth, 
are  known,  the  unexplored  ''  Sierras  "of  Venezuela 
afford  opportunities  for  initiative  and  energy  from 
which,  without  undue  optimism,  great  results  may 
be  anticipated,  judging  from  what  this  Southern 
Zone  region  surrounding  the  Sierras  has  yielded 
to  such  as  have  exploited  it.  It  was  in  the  district 
to  the  south-east  of  Ciudad-Bolivar,  not  far  from 


VENEZUELA  281 

British  Guiana,  that  the  mines  of  the  Callac  were 
discovered  which,  between  1875  and  1887,  pro- 
duced nearly  ^4,000,000  and  distributed  to  each 
of  the  322  holders  of  the  original  ^^40  shares  a  total 
sum  of  ^8400.  Since  1888,  however,  the  black 
quartz  diabase  has  remained  hopelessly  out  of  sight, 
and  the  shares  to-day  have  fallen  to  a  few  shillings. 
Upon  the  undeveloped  riches  of  the  country  a 
correspondent  writes  : — 

''There  is  copper  more  or  less  everywhere, 
chiefly  on  the  side  of  Barquisimeto,  Caracas  and 
Carupano  ;  iron,  lead  and  antimony,  and  tin  at 
various  points  in  the  Caraib  chain  ;  sulphur  in 
the  neighbourhood  of  Cumana  ;  coal  near  Alta- 
gracia  de  Orituco  and  Barcelona  ;  petroleum  in 
the  Andes  of  Merida  and  around  the  great  salt  lakes 
of  Maracaibo;  kaolin  and  pearls  near  the  island 
of  Margarita  ;  phosphates  and  guano  in  the  islands 
of  Roques,  Aves  and  Orchila.  On  the  other 
hand,  there  is  found  growing  wild  on  the  coast, 
between  Caracas  and  Rio  Chico,  a  plant  of  the 
aloe  type,  the  '  cocuiza,'  the  leaves  of  which,  from 
four  feet  to  six  feet  long,  after  being  pressed  and 
combed  give  a  very  supple  fibre  which  is  a  textile 
material  at  least  as  strong  as  hemp." 

We  have  now  to  consider  why  it  is  that,  con- 
sidering all  the  natural  advantages  of  this  country, 
its  development  has  not  hitherto  proceeded  at  the 
rate  at  which  other  South  American  countries,  no 
more  favourably  endowed  by  nature  than  is  Vene- 


282  THE   TEN   REPUBLICS 

zuela,  have  progressed.  Venezuela  is,  for  in- 
stance, about  half  as  large  again  as  Chile,  yet 
while  British  financial  interests  in  Chile  amounted 
to  over  ^^"50,000,000  at  the  end  of  1910,  less  than 
i,8, 000,000  nominal  of  British  capital  was  quoted 
on  the  London  Stock  Exchange  as  invested  in 
Venezuela,  and  if  a  list  could  be  made  of  the  few 
concerns  operating  with  British  capital  in  this 
republic,  but  not  officially  quoted  in  London, 
the  amount  would  not  be  increased  to  any  very 
appreciable  extent.  During  the  past  ten  years 
there  has  been  hardly  any  addition  made  to  the 
amount  of  British  capital  interested  in  Venezuela, 
and  comparing  the  total  with  that  concerned  with 
some  of  the  other  South  American  States,  it  must 
be  obvious  that  there  is  room  for  very  consider- 
able development.  In  the  last  year  or  two  there 
has  been  some  progress,  and  there  are  good  signs 
at  the  moment  that  this  will  not  only  continue, 
but  be  greatly  augmented  in  the  near  future. 
Such  anticipations  have,  however,  been  previously 
put  forward  and  have  not  been  justified,  and  it 
may  fairly  be  said  that  the  financial  and  political 
conditions  of  the  country  have  generally  been 
responsible  for  the  disappointment. 

No  progress  of  any  great  importance  can  be 
looked  for  unless  capital  is  obtained,  and  capital 
cannot  be  attracted  to  any  country  unless  it  has  a 
stable  government  and  will  look  after  the  interests 
of  investors,  particularly  when  they  are  not  of 
local  origin.     It  cannot  be  maintained  that  Vene- 


VENEZUELA  283 

zuela  has  behaved  creditably  towards  foreign 
investors  in  the  past,  though  the  last  arrangement 
has  now  been  kept  for  some  years  and  the  debt 
service  has  been  punctually  paid  at  the  due  dates, 
with  the  result  that  her  credit  has  advanced  con- 
siderably, the  quotation  of  her  bonds  in  London 
being  fifty  per  cent,  higher  than  the  price  ruling  as 
comparatively  recently  as  1907.  There  still  remain 
to  be  settled,  however,  one  or  two  questions 
between  the  Venezuelan  Government  and  foreign 
investors.  It  is  only  fair  to  state  that  Venezuela 
has  had  unusual  difficulties  to  contend  with. 
Smallpox  epidemics  do  not  help  a  country  to 
prosper,  while  the  despotic  rule  of  ex-President 
Castro  will  be  remembered  as  having  kept 
the  country  back  very  considerably  during  the 
past  decade.  Since  Senor  Castro  left  his  country 
for  his  country's  good,  things  have  certainly  im- 
proved. The  present  constitutional  President, 
General  Juan  Vicente  Gomez,  who  came  into 
office  in  the  early  part  of  last  year,  has  kept  the 
country  free  from  internal  troubles,  and  gives 
promise  of  assisting  to  bring  about  a  future  state 
of  development  which  must  be  beneficial  to  all  con- 
cerned. In  his  inaugural  address  to  Congress  in 
the  early  part  of  last  year  he  showed  that  Venezuela 
was  on  the  best  of  terms,  not  only  with  her  neigh- 
bours, but  with  the  world  generally,  and  promised 
reform  of  the  customs  and  other  measures  which  he 
believed  would  redound  to  the  credit  of  his  country. 
The  first    movement  for   Venezuelan    indepen- 


284  THE   TEN    REPUBLICS 

dence  was  initiated  in  1797,  and  many  subsequent 
attempts  were  made,  all  of  which  ended  in  failure, 
until  1810,  when  the  citizens  of  Caracas  rose 
against  the  Spanish  authorities,  deposed  the 
governor,  and  formed  a  constitutional  congress, 
which  met  in  March,  181 1,  and  in  the  following 
July  formally  declared  the  independence  of  the 
United  Provinces  of  Venezuela.  Spanish  authority 
was,  however,  afterwards  re-established,  and  con- 
tinued until  Simon  Bolivar,  the  great  South 
American  Liberator,  took  up  arms  against  Spain 
and  eventually  defeated  the  Royalists  in  1819, 
which  saw  the  end  of  Spanish  dominion  in 
northern  South  America. 

In  1819  Venezuela  became  a  part  of  Bolivar's 
Greater  Colombia,  and  upon  the  disruption  of  that 
federation  in  1830  Venezuela  declared  its  absolute 
independence.  Then  followed  a  long  period  of 
presidents  and  revolutions,  General  Castro,  the 
immediate  predecessor  of  the  present  holder  of  the 
chief  office  of  State,  being  still  notorious  in 
Europe  for  the  many  disputes  and  difficulties  which 
he  had  with  foreigners  and  foreign  Governments. 

The  present  Constitution  of  Venezuela  was 
authorized  by  the  National  Congress  of  August 
5th,  1909,  by  which  the  country  is  officially  termed 
the  United  States  of  Venezuela.  It  is  one  of  the 
five  Federal  Unions  of  America,  having  adopted 
the  federal  representative  republican  form  of 
government,  the  various  States  being  entirely 
autonomous    in    their    internal   government    but 


VENEZUELA  285 

leaving  certain  limited  powers  the  prerogative  of 
the  Federal  Government.  The  executive  power  is 
vested  in  a  president,  a  cabinet  of  ministers,  who 
act  in  conjunction  with  the  president,  and  a 
council  of  government,  which  co-operates  with  him 
in  certain  cases  provided  for  in  the  Constitution. 

The  United  States  of  Venezuela  consist  of 
twenty  states,  two  territories,  and  a  federal  district. 
Each  has  a  legislative  assembly  whose  members 
are  elected  according  to  their  representative  State 
in  the  Constitution,  an  executive  power  which 
consists  of  governor  and  secretary-general,  and  a 
council  of  government.  The  States  are  divided 
into  districts,  and  the  latter  into  municipalities, 
each  district  having  a  municipal  council  and  each 
municipality  a  communal  board. 

As  intimated  at  the  beginning  of  this  article, 
Venezuela  is  neither  well  nor  favourably  known  to 
British  investors,  for  only  a  comparatively  small 
amount  of  money  is  invested  in  the  country. 
The  bulk  of  this  is  in  the  Government  bonds, 
holders  of  which  have  until  very  recent  years 
had  a  very  unfavourable  experience. 

Other  British  interests  in  Venezuela  are  chiefly 
concerned  with  four  railway  companies  operating 
in  the  Republic,  although  there  are,  in  addition,  a 
further  eight  lines,  the  total  length  of  the  twelve 
being  returned  at  540  miles,  with  an  invested 
capital  of  something  over  ;^8, 000,000.  The  two 
most  important  lines  are  the  Puerto  Cabello  and 
Valencia  and  the  La   Guaira  and  Caracas,  both 


286  THE   TEN   REPUBLICS 

owned  by  British  capital,  and  it  is  in  connection 
with  the  first-named  that  claims  have  been  made 
against  the  Venezuelan  Government  for  many 
years  past,  and  are  still  unsettled.  This  is  prac- 
tically the  only  blot  now  remaining  on  the  credit 
of  that  country,  and  the  sooner  the  authorities 
realize  the  fact  and  deal  with  their  obligation  in 
that  connection  the  sooner  will  its  credit  be  re- 
stored. The  La  Guaira  and  Caracas  Railway 
Company  owns  a  line  22|  miles  long,  and  has 
generally  managed  to  do  fairly  well.  Another 
English-owned  line  is  the  Bolivar  Railway,  while 
there  is  also  the  Venezuelan  Central  Railway. 

Reliable  and  up-to-date  statistics  as  to  the 
financial  position  of  the  Government  are  not 
available,  the  latest  which  have  been  issued  only 
referring  to  the  financial  year  ending  June,  1909, 
for  which  period  the  revenue  of  the  country 
amounted  to  ;^2,oi6,5oo,  the  expenditure  for  the 
same  period  being  returned  at  ;^i,9o6,76o,  thus 
showing  a  surplus  of  revenue  over  expenditure  of 
about  ;^i  10,000,  and  comparing  with  a  surplus  of 
^^65,000  in  the  previous  year.  The  internal  and 
external  debt  of  the  country  at  the  end  of  1909 
was  placed  at  ;^7, 7 10,990.  The  budget  estimate 
for  1910-11  gave  both  revenue  and  expenditure  at 
just  under  ;^2,ooo,ooo,  the  figures,  however,  being 
of  little  importance,  as  it  is  the  rule  with  these 
countries  to  budget  evenly,  and  the  estimates  are 
only  a  very  rough  criterion  of  what  is  likely  to  be. 

It  should  perhaps  be  mentioned  that  in   con- 


VENEZUELA  287 

sequence  of  the  Anglo-Venezuelan  award  of  1903 
Venezuela  has  in  the  past  eight  years  been  called 
upon  to  liquidate  considerable  indebtedness,  and 
the  fact  that  this  has  been  done  must  not  be  over- 
looked in  judging  the  progress  or  otherwise  which 
the  country  has  made  during  the  interim.  Trade 
statistics  show  exports  during  the  year  ended 
June,  1910,  to  have  amounted  to  ;^3, 600,816,  and 
the  imports  to  ;6^2, 360,040,  thus  giving  a  balance 
in  favour  of  the  country  of  nearly  ^1,250,000.  The 
bulk  of  the  trade  is  with  the  United  States  of 
America,  for  the  imports  from  that  country 
amounted  to  ;^768,6i3,  and  the  exports  to 
;^i, 289,943,  these  figures  in  both  cases  being 
larger  than  the  trade  with  any  other  country  ; 
France  came  next,  so  far  as  exports  from 
Venezuela  are  concerned,  with  ;^i,  194,973;  where- 
as Great  Britain  and  Colonies  only  figured  for 
;^403,340  of  exports  from  Venezuela.  On  the 
other  hand,  Venezuela  imported  from  Great 
Britain  and  Colonies  ;^635,ioo  as  against  only 
;^i 56,688  from  France.  To  Germany  products 
worth  ;^346,095  were  exported,  and  the  imports 
from  that  country  reached  £^\^,22^.  The  bulk 
of  the  exports  consisted  of  coffee,  i^i, 546,005  ; 
cocoa,  ^^726,026  ;  rubber,  ^^583, 079  ;  and  hides  and 
skins,  ^^337,247.  The  total  trade  of  the  country  in 
the  year  in  question  amounted  to  the  equivalent 
of  about  ;^5, 750,000,  which  for  a  population  of 
2,664,241  is  equal  to  slightly  more  than  £2  per 
head,  and  compares  with  over  jCy  per  head  in  the 


288  THE   TEN   REPUBLICS 

neighbouring  Republic  of  Costa  Rica,  £2  per 
head  in  Nicaragua,  and  slightly  more  than  £\ 
per  head  in  Guatemala. 

Caracas  is  the  seat  of  the  Federal  administration, 
but  owing  to  the  extensive  powers  of  self-govern- 
ment enjoyed  by  each  of  the  States  there  is  a 
marked  tendency  to  decentralization,  which  is 
assisted  by  the  lack  of  intercommunication.  The 
capital  city  is  pleasantly  situated  in  a  valley  at  a 
height  of  3025  feet  above  sea-level,  10  miles  south 
of  the  port  of  La  Guaira.  In  appearance  it  is 
typical  of  most  of  the  towns  founded  by  the 
Spaniards,  with  straight  streets  intersecting  at 
right  angles,  some  shady  avenues  and  several 
handsome  squares.  In  its  three  and  a  half  cen- 
turies of  existence  earthquakes  and  civil  war 
have  played  a  destructive  part,  and  soon  after  its 
founding  it  was  sacked  by  an  English  pirate  ;  but 
to-day  it  is  still  by  far  the  most  important  social 
and  commercial  centre  which  Venezuela  can  boast. 
It  is  to  be  feared  that  this  says  but  little  for  the 
progress  of  the  republic  as  a  whole,  but  the  back- 
ward state  of  the  country  is  fully  realized  by 
those  in  power,  and  it  is  to  be  hoped  that  as  the 
condition  of  politics  is  now  more  settled,  and  past 
abuses  have  to  some  extent  been  removed,  an  era 
of  reform  and  progress  will  set  in.  Capital  is 
urgently  required  for  the  development  of  the 
country,  and  English  capitalists  have  now  in 
Venezuela  an  excellent  opportunity  of  obtaining 
a  good  return  for  their  money. 


INDEX 


Alamagfro,  expeditions,  5,  6,  184 

Alfaro,  General  Eloy,  220 

Andes,  political  significance,  26-7 

Antilles,  privateer  stations  in,  10 

Antofagasta,  201-2 

Argentina:  army  and  navy,  119- 
20 ;  betting  in,  125-6 ;  British 
trade  with:  capital  invested  in, 
61-3,  criticism  of  methods, 
^35~7  5  butter,  130;  cattle  rear- 
ing, 129-30;  chilled  and  frozen 
meat,  128 ;  cities,  population, 
116;  constitution  and  adminis- 
tration, 38-40,  116;  early  his- 
tory, 1 14-15  ;  education,  1 18-19  ! 
finance,  currency  and  tariff, 
122-4;  foreign  trade,  65-8,  112, 
126-8,  132,  198 ;  geographical 
position,  112;  Gran  Chaco, 
'34-5  ;  Great  Britain's  invasion 
of,  18;  hides  and  wool,  129; 
immigration  to,  117;  Italian 
and  Spanish  colonists  in,  117; 
linseed  production,  128;  manu- 
factures, 13 1-2  ;  meat  extract 
companies,  130 ;  mineral  pro- 
ducts, 132-3  ;  modern  rulers, 
115;  population,  66,  112;  rail- 
ways, 83-5,  120-1  ;  shipping, 
tonnage  at  different  ports,  133 ; 
timber,  133 ;  Vice-royalty  of, 
founded,  7  ;  war  with  Brazil,  19  ; 
war  with  Paraguay,  19,  233-4; 
wool  industry,  130.  See  also 
particular  names  of  towns 

Arosemena,  Don  Pablo,  109 

Asuncion,  79,  235 

Atahuallpa,  5,  219 

Aztecs  :  arts  of,  2  ;  overthrow  by 
Cortes,  3 

Bahia,  75 

Bahia  Blanca,  135;  population,  116 

Balboa,  93 

Balmaceda,  President,  18,  188 

Barranquilla,  216 

Barrett,  John,  70,  81 

Belem,  75 

Belgium,  Uruguayan  trade,  269 

Beresford,  General  William,  18 

Bogota,  79,  215-16 

Bolivar,  Simon,  9,  205-6,  284 

Bolivia :  Acre  territory  dispute, 
182  ;  agricultural  products,  146- 


I        7 ;  area,  geographical  position, 
!        etc.,    27,    141-2  ;   currency    and 
I        finance,     153-4 ;    early    history, 
I        138  ;  education,  149-50  ;  foreign 
I        trade,    65-8,   82,    152-3;   labour 
I        question,    149  ;  mineral   wealth, 
I        81,  142-5;  population,  67,    149; 
present    satisfactory   prospects, 
I        140  ;    railways,    84,    86,     140- 1, 
j        i47~8  ;  rubber  industry,  145-6  ; 
I        war  with  Chile,  17,  187;  wealth 
I        of,    81-2.       See    also   particular 
!        names  of  totons 
Bovril  Company,  130 
Brazil  :     Acre    territory    dispute, 
182  ;  agricultural  products,  165- 
6,    170-6,    see    also    Sao    Paulo 
State  ;  army  and   navy,    163-4  ; 
British      investments      in,     64 ; 
coffee  exports,    172-3  ;  constitu- 
tion  and  administration,  38-40, 
161-2  ;      early     history,      156-9  ; 
education,  164-5  !  foreign  trade, 
65-8,    176-9  ;     finance,    revenue 
and      currency,      180-2  ;      geo- 
graphical   and    physiographical 
conditions,  160-1;       mineral 

deposits,  177-8;  population,  66, 
162  ;    Portuguese      occupation, 
6,  22-4;  railways,   84-5,    169-70; 
Republic  proclaimed,   160  ;  Re- 
publican     administration      and 
recent     history,     23 ;      rubber, 
173-4  ;  Uruguay's  independence 
recognized  by,  19-20  ;  war  with 
Argentina,    19,     115;    war  with 
Paraguay,  233-4.     See  also  par- 
ticular names  oftozmis 
Bridge,  Admiral  Sir  C,  105-6 
British  Honduras,  13 
Bucaramanga,  216 
Buenos    Aires,     126  :    Centennial 
Exhibition,    126;  Jockey  Club, 
125-6  ;  population,  116;  railway 
construction,      city       improve- 
ments, etc.,  progress  in,  68-70, 
124-5  ;  shipping,  tonnage,  133 

Cabot,  Sebastian,  232 
Cabral,  156 

Caceres,  General,  248-9 
Caracas,  79,  288 
Cartagena,  216 


289 


290 


THE   TEN   REPUBLICS 


Castro,  Cipriano,  16,  283,  284 

Celman,  115 

Central  American  Republics :  Dis- 
putes between,  agreement  as 
to  arbitration,  13  ;  Spanish  do- 
mination, II 

Charles  V  of  Spain,  9 

Chile  :  agricultural  products,  203 ; 
army  and  navy,  191-2  ;  character- 
istics of  people,  190-1,  204  ; 
constitution  and  administration, 
53-4,  188-90;  early  history,  184; 
foreign  trade,  65-8,  195-8  ;  geo- 
graphical position,  28,  183;  im- 
migration, 191  ;  mineral  pro- 
ducts, 202-3 ;  nitrate  industry, 
199-201;  population,  67,  183; 
ports,  195  ;  railways,  84,  85,  194- 
5;  recent  history,  18;  Republic 
founded  186 ;  revenue,  finance 
and    currency,     198-9 ;      tariff, 

204  ;  war  with  Peru  and  Bolivia, 
171,  187.  See  also  particular 
names  oftcmns 

Cochrane,  Lord,  186 

Colombia  :  agricultural  products, 
208-10;  army,  218;  constitu- 
tion and  administration,  47-8, 
217-18;    early     history,     14-15, 

205  ;  education,  216-17  ;  foreign 
trade,  65-8,  212;  geographical 
position  and  area,  206-7  '■>  mineral 
wealth,  81,  210-11  ;  population, 
67,  206-7  ;  President's  message 
1909-10,  214;  railways,  84, 
214-15;  Republic  founded,  206  ; 
rivers,  208  ;  sources  of  wealth 
in,  81  ;  Spanish  rule  overthrown 
in,  205-6 ;  tariff  concessions, 
212,  213-14.  See  also  particular 
names  of  towns. 

Columbus,  Christopher,  1-3,  93 
Cordoba,  116,  135 
Corrientes,  117 
Cortes,  Fernando,  3 
Cuenca,  226 

da  Fonseca,  Marshal  Hermes,  160 

d'Andrade,  General  Gomes,  158 

de  la  Gasca,  Pedro,  7 

deMoraes,  President  Prudente,  160 

de  Nicuesa,  Diego,  93 

de  Ojeda,  Alonso,  205 

de  Pierola,  Nicolas,  249 

de  Quesada,  Jimenez,  6,  205 


de  Vaca,  232 
Diaz,  Porfirio,  11 
Drake,  8 

Ecuador :  agricultural  products, 
225  ;  constitution  and  adminis- 
tration, 48-51,  223-4  ;  early  his- 
tory, 15,  219;  education,  230; 
foreign  trade,  65-8,  226-8 ; 
finance,  revenue  and  currency, 
228-9  •  geographical  position, 
area,  221-3;  independence  pro- 
claimed, 220 ;  mineral  resources, 
224  ;  population,  67,  226 ;  rail- 
ways, 84,  229-30.  See  also  par- 
ticular names  of  towns 

Esmeraldas,  226 

Ferdinand  VII  of  Spain,  8,  185 
Francia,  Dr.,  20 

Galdpagos  Islands,  222 

Germany :  Bolivian  trade,  82, 
152-3;  Brazilian  trade,  176-7; 
Chilian  trade,  196-7  ;  Colombian 
trade,  213  ;  Equatorian  trade, 
227,  229 ;  Peruvian  trade,  257  ; 
Uruguayan  trade,  268 

Gilbert,  J.  S,,  93,  94 

Goethals,  Colonel  G.  W.,  104 

Gomez,  President,  83,  283 

Gorgas,  Colonel,  102-3 

Great  Britain  :  Argentine  invaded 
by,  18  ;  Argentine  trade,  British 
investments,  61-3,  criticism  of 
methods,  135-7  ;  Bolivian  trade, 
152-3  ;  Brazilian  investments, 
64;  Brazilian  trade,  176-7;  Chil- 
ian trade,  196-7 ;  Colombian 
trade,  213;  Equatorian  trade, 
228-9  ;  Peruvian  trade,  257 ; 
South  American  Independence 
recognized  by,  9  ;  and  United 
States,  controversy  re  British 
Guiana  boundary,  16 ;  Uru- 
guayan investments,  267  ;  Uru- 
guayan trade,  269 

Grey,  Sir  E.,  192-3 

Guiana,  16-17 

Guayaquil,  225 

Hawkins,  8 
Honduras,  13 
Hume,  Major  M.,  iii 


INDEX 


291 


Immigration:  to  Argentina,   117; 

Chilian,    191  ;     Paraguay — need 

for,  239-41 
Incas,  2 
Isabella  of  Portugal,  23 

Jara,  Colonel,  234 
Jesuit  missions,  20 
JoaoVI,  Dom,  of  Portugal,  22,  159 

Lake  Titicaca,  152 

La  Paz,  79,  1 50- 1 

La  Plata,  1 16 

Latacunga,  226 

Legui'a,  Dr.  Augusto  B.,  250 

Lemco  and  Oxo  Company,  130 

Lesseps,  Ferdinand  de,  97 

Lima,  79,  245-6,  251 

Lopez,  Carlos,  233 

Lopez,  Francisco,  20-1 

Lopez,  Marshal  Solano,  233 

Loreto,  255-6 

Luque,  5 

Mahan,  Admiral,   105-6 

ManAos,  75-6,  167 

Mate,  175 

Maximilian,  Emperor  of  Mexico,  1 1 

Medellin,  216 

Mendoza,  116,  128 

Mexico:  Aztec  Empire,  3-4;  early 

history,  7,  11 
Montevideo,  70-2,  273-4  ;  siege  of, 

20 
Moreno,  Garcfa,  220 
Morgan,  Capt.  Henry,  10,  93 

New  Granada,  7,  94,  205-6 
Nicaragua,  13 

O'Higgins,  Bernardo,  186 
"  Old  Panami,"  93 
Ordonez,  Jose  Batlle  y,  271 
Orellana,  6 

Panama :  area,  geographical 
position  and  population,  108 ; 
Canal  Zone  administration,  108  ; 
Canal  Zone,  cession  to  United 
States,  14-15;  early  history,  14, 
92-5  ;  government  and  admini- 
stration, 109-10;  health  condi- 
tions, 103 ;  independence  of, 
proclaimed,  93,  95-6 ;  railway 
enterprise,  94-5.  See  also  par- 
ticular names  oftozans 


Panama  Canal  :  economic  impor- 
tance, 80,    88-91,    104-5,  107-8  ; 
history  and   details   of    present 
work,  97-104. 
Panami  Congress,  13. 
Para,  75,  76,  167 

Paraguay  :  agricultural  and  forest 
products,  237-8  ;  cattle  rearing, 
238-9  ;  Chaco,  231  ;  constitution 
and  administration,  43-5  ;  cur- 
rency and  finance,  235-6,  241-2  ; 
early  history,  232  ;  foreign 
trade,  65-8,  236-7;  geographical 
position,  27,  231-2 ;  immigra- 
tion, need  for,  239-41  ;  Jesuit 
missions  in,  20 ;  mineral  de- 
posits, 239 ;  population,  67, 
231-2  ;  railways,  84,  239,  243-4  ; 
Republic  proclaimed,  232  ; 
rivers,  231  ;  smuggling  in,  242  ; 
war  with  Brazil,  Argentina  and 
Uruguay,  19,  233-4,  263.  See 
also  particular  names  of  towns 
Parana,  116 
Pardo,  Dr.  Jos^,  249 
Pedro    V,    Dom,      Emperor      of 

Brazil,  22-3,  159 
Pelotas,  76 

Pena,  Dr.  Roque  Saenz,  115 
Pernambuco,  75 

Peru  :  agricultural  products, 
256-7 ;  and  Bolivia,  war  with 
Chile,  17;  cattle  and  sheep 
rearing,  257 ;  commercial  im- 
provement, 82  ;  constitution  and 
administration,  51-3,  251-2; 
education,  260-1  ;  expedition 
from,  6 ;  foreign  trade,  65-8, 
257-8 ;  geography,  area  and 
population,  250-1  ;  guano  beds, 
253;  labour  question,  261; 
nianufactures,  258  ;  mineral 
wealth,  252-3 ;  population,  67, 
251;  railways,  84,  259-60;  re- 
cent history,  248-9;  revenues 
and  finance,  258-9  ;  rubber  and 
caucho,  254-5  ;  Vice-royalty  of, 
founded,  7;  warwith  Chile,  187. 
Seealso particular  names  of  tcnions 
Pinz6n,  156 
Pizarro,  Francisco,  5 
Porto  Alegre,  76 

Portugal,  Brazil's  occupation  of, 
24,  157-9  ;  and  Spain,  division 
of  South  America  between,  24 


292 


THE  TEN   REPUBLICS 


Potosi:  ancient  glories,  138;  silver 

mining",  in  143-4 
Prescott's  History  of  Mexico,  4 
Privateers,  9-10 

Quintana,  Don  Manuel,  115 
Quito,  79,  219,  225-6 

Railways,  important  factors  in 
South  American  development, 
83.  See  also  under  particular 
States 

Ralegh,  Sir  Walter,  276 

Riobamba,  226 

Rio  de  Janeiro,  72-5,  167-8;  har- 
bour improvements,  76,  167 

Rio  Grande,  167 

Recife,  76,  167 

Roca,  General,  20 

Rosario,  116,  134 

Rosas,  19,  115 

Sanclemente,  President,  95 

San  Mart/n,  9,  186 

San  Salvador,  13 

Santa  Fe,  116,  134 

Santa  Marta,  209 

Santiago,  77,  190 

Santos,  75,  76,  167,  169 

Sao  Paulo  city,  75,  168-9 

Sao  Paulo  State,  171-3 

South  America:  economic  import- 
ance, 56-60 ;  trade  returns,  65- 
8  ;  constitutions,  outline  and 
type,  29-38  ;  tariffs,  31.  See  also 
particular  States 

Spain  :  Paraguay  separated  from, 
232  ;  and  Portugal,  divisions  of 
South  America  between,  24 ; 
South  American  possessions  of, 
history  and  overthrow  of,  i- 
10;  South  American  trade  at 
first  mainly  in  hands  of,  10 

Sucre,  151 

Sucre,  General,  220 

Tarapaca,  248 

Townley,  Lady  S.,  235,  243 

Trade,  returns  of.  See  under  par- 
ticular countries  and  under 
South  America. 

Tucuman,  ii6 

United  States  of  America  :  Boliv- 
ian trade,  152-3  ;  Brazilian  trade, 


176  ;  Chilian  trade,  196-7  ;  Co- 
lombian trade,  212-13;  I^qua- 
torian  trade,  227,  229 ;  and 
Great  Britain,  controversy  re 
British  Guiana  boundary,  26 ; 
Panama  Canal  Zone  acquired 
by,  97-8  ;  Paraguay  trade,  239  ; 
Peruvian  trade,  257;  South 
American  independence  recog- 
nized by,  9  ;  Uruguayan  trade, 
269 
Uruguay:  British  capital  invested 
in,  267  ;  commercial  importance 
of,  progress,  71  ;  constitution 
and  administration,  265-7,  45''7  5 
cereals,  269-70 ;  early  history, 
262  ;  education,  271-2  ;  foreign 
trade,  65-8,  72,  268-9  J  geo- 
graphical position,  28,  263-4  ;  in- 
dependence proclaimed,  19-20, 
272  ;  jerked  beef  trade,  269 ; 
live  stock  trade,  269  ;  meat 
packing  houses,  269  ;  popula- 
tion, 67,  274  ;  railways,  84,  86, 
266  ;  revenue  and  finance,  265-6  ; 
war  with  Paraguay,  233-4,  263. 
See  also  particular  names  of 
towns 

Valdivia,  184 

Valparaiso,  18,  77-8. 

Venezuela  :  agricultural  and  forest 
products,  279-80 ;  British  in- 
terests in,  285-6 ;  cattle  lands, 
279  ;  constitution  and  admini- 
stration, 43-3  ;  284-5 ;  early 
history,  16  ;  finance  and  revenue, 
286-7  »  financial  instability  has 
hindered  development  of,  282-3  '* 
foreign  trade,  65-87,  287-8 ; 
geography,  area,  etc,  277-8 ;  im- 
proved commercial  conditions, 
82-3 ;  independence,  movement 
for,  284  ;  mineral  wealth,  280-1  ; 
population,  67  ;  railways,  286  ; 
river  system,  278-9.  See  also 
particular  names  of  towns 

Vera  Cruz,  3 

Villazon,  Dr.  Eliodoro,  154 

West  Indies,  9 
Whitelock,  General,  18 
Williman,  Dr.,  270-1 

Yucatan,  3. 


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DEC  18  193 


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OCT    15  1945 


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